India's HDFC Bank posts loan growth, higher deposits in December quarter
India's top private lender HDFC Bank posted on Monday a sequential quarterly loan growth, supported by the festive season and sweeping tax cuts, while deposits also rose.
As of December 31, loans rose 2.7% sequentially to 28.45 trillion rupees ($316.13 billion), while deposits increased 2.1% to 28.6 trillion rupees, the Mumbai-based bank said.
Analysts had expected stronger loan demand in October–December, supported by spending in the festive season and the boost from tax cuts.
HDFC Bank merged with its parent HDFC in July 2023, adding a significant pool of loans but a smaller volume of deposits. This created pressure for the lender to either raise deposits or ease loan growth.
Since the merger, the bank has consistently grown deposits faster than loans to manage its loan-to-deposit ratio (LDR).
HDFC Bank said it expects loan growth to match the industry in fiscal year 2026 and exceed it in 2027.
The lender has said it aims to return its LDR to pre-merger levels of 85%-90% in 2026-27.
($1 = 89.9940 Indian rupees)
