Signage of HDFC Bank seen at one of its branch in Bengaluru, India. (Photographer: Anirudh Saligrama/BloombergQuint)

HDFC Bank’s Loan Growth Improves

HDFC Bank Ltd.’s loan growth improved but the share of low-cost current and savings account deposits fell in the June quarter.

The private lender’s loans grew 21.9 percent year-on-year and 7.7 percent over the previous quarter to Rs 7.09 lakh crore in the quarter ended June, it said in an exchange filing. The advances had risen 18.7 percent in the previous quarter. The bank purchased loans worth Rs 9,700 crore in the June quarter from HDFC Ltd.

Its deposits grew 20 percent year-on-year to Rs 8.06 lakh crore—the second straight quarter with over 20 percent growth, it said. HDFC Bank’s CASA ratio at the end of June quarter stood at 41 percent compared with 43.5 percent at the end of March.

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The lender, in its earnings conference for March quarter, had said that it expected its net interest margin to remain within a range of 4.1-4.4 percent.

While HDFC Bank’s NIM has remained above 4.3 percent in the previous five quarters, a lower CASA ratio could possibly hurt NIM in the April-June quarter. Generally, a lower proportion of low-cost CASA deposits is associated with lower a NIM.

The private lender has disclosed certain parameters ahead of its quarterly earnings for the first time. The country’s third-most valuable listed company will announce its financials for the quarter ended June on July 21. The bank said it made the disclosures in accordance with its board’s approved policy.

Shares of the lender today closed 0.34 percent higher at Rs 2,121.30 apiece on the BSE.

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