A private security guard moves past a signboard of a HDFC Bank automated teller machine (ATM) in New Delhi, India, October 20, 2016. REUTERS/Adnan Abidi
MUMBAI: India’s HDFC Bank, the country’s biggest private lender, says its quarter-on-quarter deposit growth outpaced loan growth in the three months to Dec 31.
Deposits rose 4.2% to 24.53 trillion Indian rupees or about US$286.03bil, slowing from 5.1% rise in July-September quarter, the Mumbai-based bank said.
Its low-cost current and savings account deposits rose 1.1%, it said.
Gross advances, or loans sanctioned and disbursed, rose 0.9% to 25.43 trillion rupees, slowing from 1.3% sequential growth in the previous quarter.
HDFC Bank has the most assets among all private banks in India. It merged with its parent HDFC in July 2023, adding a large pool of loans to its portfolio but a much smaller volume of deposits.
After the merger, the bank’s loan-to-deposit ratio rose to around 110%, putting it under pressure to boost deposits or slow loan growth.
Over the past few months, it has offered retail loans for sale to reduce its loan-to-deposit ratio, a key metric for banks to assess their liquidity position. — Reuters
