Mumbai, April 4 – HDFC Bank reported on Saturday a widening gap between credit and deposit growth in the March quarter, as strong loan expansion continued to outpace relatively slower deposit mobilization, keeping the bank's credit-deposit ratio elevated.
According to an exchange filing, the bank's gross advances rose by approximately 17 per cent year-on-year (YoY) to nearly Rs 25 lakh crore as of March 31, compared to about Rs 21.4 lakh crore a year ago.
On a sequential basis, loan growth remained moderate, largely supported by the retail and SME segments, while corporate lending continued in a calibrated manner. Retail loans once again drove incremental disbursements during the quarter.
On the liabilities side, total deposits stood at approximately Rs 23.5 lakh crore, up from around Rs 20.5 lakh crore a year earlier.
However, the pace of deposit growth lagged behind credit expansion, keeping the credit-deposit ratio elevated at around 106–108 per cent.
The bank also saw some pressure on low-cost deposits. CASA deposits grew at a slower pace, leading to a slight decline in the CASA ratio to about 37–38 per cent from 38–39 per cent in the previous quarter.
This indicates continued challenges in mobilizing cheaper funds amid tight liquidity conditions.
In a separate filing dated March 24, the bank said its Board of Directors will meet on April 18 to approve the audited financial results for the quarter and full financial year ended March 31.
The board will also consider a potential dividend for FY26 and decide the record date for the same.
Looking ahead, analysts believe key factors to watch will be the bank’s ability to accelerate deposit growth, improve CASA traction, and maintain stable margins.
Meanwhile, the bank is also dealing with governance-related developments. Sources indicated that it does not plan to initiate legal action against former non-executive chairman Atanu Chakraborty following his resignation in March.
Instead, the lender is focusing on strengthening internal processes, particularly in third-party sales practices.
The bank has already taken disciplinary action in connection with the alleged mis-selling of AT-1 bonds in 2018-19, suspending three senior executives and penalising 12 other employees.
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