Company Update : HDFC Bank by Motilal Oswal Financial Services Ltd
Robust gross advances growth at 4.4% QoQ, deposits rise 1.4% QoQ | CD ratio inches up
CASA ratio steady at 33.9%
HDFCB released its 2QFY26 business update. The following are the key takeaways:
* Gross advances grew 9.9% YoY/4.4% QoQ to INR27.7t. The bank’s average AUM (grossing up for interbank, bills rediscounting, and securitization) grew 9% YoY/ 1.9% and period-end AUM rose 8.9% YoY/3.1% QoQ (MOFSLe at 7.7% YoY/2.3% QoQ for net advances).
* Deposits (period-end) grew 12.1% YoY/1.4% QoQ to INR28t. CASA deposits (periodend) grew by 1.3% QoQ (up 7.4% YoY), while term deposits increased 1.4% QoQ/ 14.6% YoY (MOFSLe for deposits at 13.7% YoY/2.8% QoQ).
* Average deposits grew 15.1% YoY/2.0% QoQ, while average CASA deposits rose 8.5% YoY/1.9% QoQ. Average TD grew 18.6% YoY/2.0% QoQ.
* HDFCB’s advances growth was ahead of our estimate, while deposit growth marginally lagged our estimate. CASA ratio stood at 33.9% (vs. 33.9% in 1QFY26). Consequently, on a calculated basis, the CD ratio increased sharply to 97.9% (vs. 95.1% in 1QFY26).
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