HDFC Bank Highlights ₹305 Crore Deposits per Branch, Signals Deposit Growth Visibility

HDFC Bank has reported Q3 FY26 earnings with deposit growth driven by its expanding and maturing branch network, supported by increased cross-selling of mortgages and credit cards. 

As one of India's major private lenders, the bank is strengthening customer relationships across its 9,616 branches. 

Branch Expansion Drives Deposit Productivity 

As of Q3 FY26, HDFC Bank operates 9,616 branches, accounting for over 6% of India’s total branch footprint. Average deposits per branch stand at ₹305 crore, which management considers highly efficient.  

Branch expansion peaked at 1,500 additions in FY23 and reduced to 1,000 in FY24, with 500 new branches added in the first 9 months of FY26. The bank highlighted that branch productivity improves significantly after the 5-year maturity mark, contributing to stronger deposit balances. 

Cross-Selling Mortgages and Credit Cards to Deepen Balances 

HDFC Bank leverages home loans and credit cards to enhance customer engagement. Mortgages are positioned as relationship anchors rather than stand-alone loans, with 99% of mortgage clients opening savings accounts.  

Similarly, credit cards have aided balance growth, with over 25 million cards and a 29% market share in spending. For every ₹100 in credit card balance, the bank holds over ₹550 in deposits, correlating product holding with deposit mobilisation. 

Read More: Mirae Asset Mutual Fund’s December Portfolio: ITC and HDFC Bank Lead Top 10 Picks! 

HDFC Bank Q3 FY26 Operational Metrics 

Deposits rose 12% YoY, with average balances reaching ₹27.5 trillion and quarter-end deposits at ₹28.6 trillion. The bank’s CASA ratio remained stable at 34%, with 2.4% growth in CASA balances QoQ.  

Despite subdued retail loan growth of 6.9% YoY, disbursals in mortgage and non-mortgage retail segments improved.  

Gross advances touched ₹28.4 trillion, marking an 11.9% YoY rise. Net interest income grew 6.4% YoY to ₹32,600 crore, with net interest margin at 3.35% due to deposit repricing lag. 

Funding Strategy and CD Ratio Focus 

HDFC Bank’s credit-deposit ratio stood near 98% at the end of December. The bank is not focusing on rapid correction but prefers gradual moderation.  

It continues to avoid high-cost wholesale deposits, maintaining a preference for granular, branch-led funding sources. The customer base crossed 10 crore, with 1.5 million new liability customers added during the quarter. 

HDFC Bank Share Price Performance 

As of January 21, 2026, at 9:34 AM, HDFC Bank share price on NSE was trading at ₹930.60 down by 0.06% from the previous closing price.  

Conclusion 

HDFC Bank’s Q3 FY26 results reflect a consistent focus on deposit growth through maturing branches and effective cross-selling. The branch network’s growing productivity and deeper customer engagement have led to stable deposit metrics and improved overall performance. 

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