Early on Friday, HDFC Bank saw its shares decline by more than 3% following a lackluster business update for the first quarter. The bank reported a decrease in both advances and deposits during this period.
According to the update, HDFC Bank’s advances fell by 0.8% quarter-on-quarter to ₹24.87 lakh crore by the end of June 2024, down from ₹25.1 lakh crore at the end of March 2024. This decline was primarily attributed to the ongoing reduction in its lower-yielding corporate loan portfolio, including that from erstwhile HDFC Ltd.
On a year-on-year basis, the bank’s advances showed a growth of 52.6%, rising from ₹16.30 lakh crore. Meanwhile, deposits for Q1FY25 stood at ₹23.79 lakh crore, marking a 24.4% increase from ₹19.13 lakh crore a year ago. Deposits remained nearly flat compared to ₹23.79 lakh crore as of March 31, 2024.
The bank’s low-cost deposits, known as current and savings accounts (CASA), comprised 36.3% of total deposits by the end of June 2024, down from 38.2% in March 2024. CASA deposits as of June 30 saw a year-on-year increase of 6.2%, amounting to ₹8.63 lakh crore, but registered a nearly 5% decrease from ₹9.08 lakh crore on a quarterly basis.
Additionally, HDFC Bank’s liquidity coverage ratio improved to 123% in Q1, up from 115% in the previous quarter.