HDFC Bank Jan-Mar deposits up 12.8%, outpace 10% advance growth

HDFC Bank reported steady double-digit growth in both advances and deposits in January-March, signalling continued balance sheet expansion even as the sector navigates tighter liquidity conditions and bank faces a governance cloud.

The bank’s average loans rose 10% year-on-year to ₹29.64 trillion in the January–March quarter, while period-end advances stood at ₹30.57 trillion, up 10.2% from a year earlier. Gross advances grew faster at 12% to ₹29.6 trillion as of March 31, 2026, according to a regulatory filing on Saturday.

On the liabilities side, average deposits increased 12.8% year-on-year to ₹28.51 trillion during the quarter. Period-end deposits came in at ₹31.06 trillion, marking a stronger 14.4% growth compared with the same period last year.

The growth was led by time deposits, which expanded 13.7% on average and 15.5% at period-end, indicating continued reliance on higher-cost funding. In contrast, average current and savings account deposits grew 10.8%, with period-end CASA rising 12.3% to ₹10.61 trillion.

Sequentially, the data points to a steady build-up in both credit and deposits through 2025-26, with advances under management rising from ₹28.64 trillion in December 2025 to ₹29.64 trillion in March 2026. Deposits showed a similar trend, increasing from ₹27.52 trillion to ₹28.51 trillion over the same period.

The divergence between deposit and credit growth — with deposits outpacing advances — may offer some relief on funding pressures, although the tilt towards time deposits suggests a higher cost of funds environment.

HDFC Bank remains the country’s largest private sector lender by assets, and its quarterly business updates are closely tracked by investors as a proxy for system-wide credit demand and deposit mobilisation trends.