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Loan growth healthy; CASA mix declines on period-end basis

* Gross advances grew by 15.4% YoY/3.4% QoQ to INR30.6t (the bank added INR1.0t of abs. loan in 1QFY27, vs INR0.9t in 1QFY26). Advances growth marginally beat MOFSLe of 14.5% YoY/2.4% QoQ for net advances

* The bank’s period-end AUM (grossing up for inter-bank, bills rediscounting, and securitization) grew 12.4% YoY/2.3% QoQ, and average AUM grew 10.8% YoY/2.5% QoQ.

* Deposits (period-end) grew 14.7% YoY/2.1% QoQ to INR31.7t (the bank added ~INR0.65t of abs. deposits in 1QFY27 vs INR0.49t in 1QFY26 and INR2.45t deposits in 4QFY26. Deposit growth was in line with MOFSLe of 14.5% YoY/1.9% QoQ.

* CASA deposits (period-end) grew by 9.4% YoY/declined 3.3% QoQ, while term deposits grew by 17.4% YoY/4.9% QoQ.

* Average deposits grew 13.3% YoY/5.6% QoQ, while average CASA deposits grew 11.2% YoY/4.2% QoQ. Average TD grew by 14.3% YoY/6.3% QoQ. CASA mix declined by ~180bp QoQ to ~32.3%.

* HDFCB reported robust loan growth, marginally ahead of estimates, while deposit growth was in line. Consequently, the CD ratio inched up to 95.8% (vs. 94.6% in 4QFY26). We expect margins to contract slightly this quarter and, in our recent preview note, estimated a 2bp QoQ margin contraction.

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