HDFC Bank deposits grow 2x sector rate

Mumbai: HDFC Bank has said that its advances rose 19.5% year on year, while deposits grew 19.9%. The second-largest bank’s growth in deposits is more than double the industry rate of 9.4%, while loan growth is marginally higher than the industry rate of 17.4%.According to a stock exchange filing by the bank, its loan book rose to Rs 15 lakh crore as of December 2022 from Rs 12.6 lakh crore a year earlier. The sequential loan growth was around 1.8%.The bank’s internal business classification shows domestic retail loans grew by around 21.5% over December 31, 2021. The bank’s commercial & rural banking loans grew even faster by around 30% over December 31, 2021 while corporate & other wholesale loans grew by around 20%.The bank’s deposits at the end of the quarter stood at Rs 17,335 crore compared to Rs 14,459 crore a year earlier.Retail deposits increased by around Rs 67,000 crore during the quarter, and grew by about 21.5% over December 31, 2021. Wholesale deposits grew by around 11.5% over December 31, 2021 and were lower by around 2.5% over September 30, 2022.“HDFC Bank’s deposit growth at 20% YoY for Q3FY23 was in line with loan growth of 20%. This is in complete contrast to what overall banking system is reporting with a big gap between deposit growth at around 9% and loan growth at 17% YoY,” said Suresh Ganapathy, associate director, Macquarie.“As per our calculations and estimates, HDFC Bank’s incremental deposit market share 9MFYTD could be closer to around 25% in deposits in our view compared to an outstanding market share of ~10% which is quite commendable,” said Ganapathy.IndusInd Bank said that its advances grew 19% year on year to Rs 2.7 lakh crore while deposits rose 14% to Rs 3.2 lakh crore. Another private lender Yes Bank saw its loan book grow by 11.7% year on year to Rs 1,76,241 crore while deposits rose 15.9% to Rs 1,84,288 crore. During the quarter the bank sold its stressed loan portfolio to JC Flowers ARC. The bank said that the loans and advances figures were normalised to make figures comparable with the previous period.With private sector banks growing their deposit books faster than public sector banks, they are expected to increase their market share.