HDFC Bank shares trade in red on Q3 update, gross advances rise 62.4%

Shares of HDFC Bank fell 0.7 percent after the bank reported its update for the October-December quarter of the current fiscal year. The lender’s gross advances for the quarter ended December surged 62.4 percent to Rs 24.69 lakh crore on-year.

As of 10.50am, HDFC Bank shares were trading at Rs 1,681.05, lower by 0.58 percent on the NSE.

On a sequential basis, the private lender’s gross advances gained around 4.9 percent from Rs 23.55 lakh crore. “Grossing up for transfers through inter-bank participation certificates and bills rediscounted, the bank’s advances grew by around 60.7 percent over December 31, 2022 and around 3.8 percent over September 30, 2023,” HDFC Bank said.

For Q3FY24, domestic retail loans skyrocketed 111 percent on-year, while increasing 3 percent on a sequential note. Commercial and rural banking loans grew by around 31.5 percent over December 31, 2022 and around 6.5 percent over September 30, 2023.

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Additionally, corporate and other wholesale loans (excluding non-individual loans of the HDFC) grew around 11 percent over December 31, 2022 and around 2 percent over September 30, 2023.

At the end of the third quarter for the current fiscal year, HDFC Bank’s deposits stood at Rs 22.14 lakh crore, marking a robust growth of 27.7 percent from Rs 17.33 lakh crore a year back.

Retail deposits saw a significant uptick of Rs 5.3 lakh crore, resulting in a 28.4 percent increase on-year. Wholesale deposits, while rising 24.4 percent YoY, slipped around 3.4 percent on-quarter.

The Bank’s CASA deposits aggregated to approximately Rs 8.36 lakh crore, reflecting a gain of 9.5 percent from Rs 7.63 lakh crore in December 2022 and 2.2 percent growth from the quarter ended September 2023.

Also read | HDFC Bank Q3 update: Advances grow 62.4%, strong growth in retail loans

Retail CASA grew around 10 percent on-year and the bank’s CASA ratio stood at 37.7 percent as of December 31, 2023, as against 44 percent YoY and 7.6 percent QoQ.

“The figures for the period ended December 31, 2023 include the operations of erstwhile HDFC which amalgamated with and into HDFC Bank on July 1, 2023 and hence are not comparable with those of the corresponding period of the previous year,” HDFC Bank said in a filing with the exchanges.

Over the past six months, HDFC Bank’s shares have traded flat, eking out a marginal rise of 0.32 percent. In comparison, the frontline index Nifty 50 has jumped 11.78 percent during the same time period.