HDFC Bank shares rise 2.4% on robust advances and deposits growth
Upstox
2 min read • Updated: April 4, 2024, 7:20 PM
Summary
The growth in advances was primarily driven by substantial increases in retail advances, which include home loans, consumer loans, and personal loans. The bank’s deposit profile remained firm on the back of robust growth in retail deposits.The full effect of the merger of HDFC Bank and HDFC Ltd is yet to be seen in the business as the merger was completed in July 2023.
India's largest private sector lender, HDFC Bank, reported robust business growth for Q4FY24 and FY24. The shares of HDFC Bank rose more than 2% following the business update on Thursday morning.
Here are some of the key highlights from HDFC Bank’s business update:
Strong lending profile
HDFC Bank's gross advances rose by 55.4% to ₹25.08 lakh crore in FY24 as compared to ₹16.4 lakh crore in FY23. Meanwhile, deposits for the same period stood at ₹23.8 lakh crore, up 26.5% from ₹18.8 lakh crore in FY23.
Diversified loan book
The growth in advances was primarily driven by substantial increases in retail advances, which include home loans, consumer loans, and personal loans, which grew by 108% YoY and 3.7% QoQ—followed by commercial and rural banking loans, up by 26% YoY and 4.3% QoQ. While the Corporate advances grew by 4.4% YoY and declined 2.2% QoQ, the corporate advances growth for FY24 does not include erstwhile HDFC's business.
Deposits continue to grow at steady pace
The deposit profile for the bank remained firm on the back of retail deposits. The retail deposits grew by 27% YoY and 6.9% QoQ, and the wholesale deposits grew by 19% YoY and 10.4% QoQ. The current account and savings account (CASA) ratio for the bank stood at 38.2% as of March 31, 2024, compared to 44% as of March 2023, and 37.7% as of December 31, 2023.
The private sector lender had posted a 33% YoY jump in net profit to ₹16,372 crore in Q3FY24, primarily led by a 23.9% rise in net interest income for the bank at ₹28,470 crore vs ₹22,990 crore in Q3FY23. The asset quality for the bank remained stable as gross non-performing assets (GNPA) for the quarter came at 1.26% while net NPA stood at 0.31%
It is important to note that the previous year's figures for the same period may not be directly comparable as HDFC Ltd merged into HDFC Bank Ltd on 1 July, 2023.