Out of all the private banks in India, HDFC Bank has the greatest assets. In July 2023, HDFC Bank has been merged with its parent company, HDFC ( Home LoanU, which resulted in a significantly smaller level of deposits but a larger pool of loans.
The largest private lender in the nation, HDFC Bank, reported on Saturday that its deposit growth exceeded its loan growth in the three months ending December 31.
The Mumbai-based bank reported that deposits increased 4.2% to 24.53 trillion Indian rupees ($286.03 billion), which was a slower increase than the 5.1% increase during the July-September quarter.
It reported a 1.1% increase in deposits into its low-cost current and savings accounts.
Loans approved and disbursed, or gross advances, increased 0.9% to 25.43 trillion rupees, a decrease from the previous quarter’s 1.3% sequential growth.
The bank was under pressure to increase deposits or slow loan growth after the merger, since its loan-to-deposit ratio increased to about 110%.
In order to lower its loan-to-deposit ratio—a crucial indicator used by banks to evaluate their liquidity position—it has been selling retail loans over the past few months.
HDFC Bank announced that it has securitized 216 billion rupees’ worth of loans “as a strategic initiative” in the December quarter.
Following a central bank crackdown on “exuberant” lending, lenders continued to limit unsecured and personal loans, causing overall loan growth for Indian banks to decrease for the fifth consecutive month in November.
In a separate announcement late Friday, HDFC Bank stated that the Reserve Bank of India had permitted it to purchase up to 9.5% of Kotak Mahindra Bank, AU Small Finance Bank and Capital Small Finance Bank within a year from the date of approval