HDFC Bank shares rise 3% as advances, deposits surge in Q4

Shares of HDFC Bank climbed nearly 3% on Wednesday, a day after the country’s largest private sector lender by assets released its business update for the fourth quarter ended March 2023. The Mumbai-headquartered lender has reported double-digit growth in its advances and deposits during January-March period, aided by a rise in retail, and commercial and corporate loan books. The bank is scheduled to release its financial results for the quarter and full year ended March 31, 2023, on April 15.

Boosted by Q4 updates, HDFC Bank shares opened marginally higher at ₹1,613 against the previous closing price of ₹1,610.35 on the BSE. In the first two-hour of trade so far, the banking heavyweight rose 2.7% to hit a high of ₹1,653.75, while the market capitalisation rose to ₹9.19 lakh crore. The largecap stock has been gaining for the last six sessions and added nearly 6% during this period.

HDFC Bank shares currently trade 4% lower than their 52-week high and 30% higher than their 52-week low. The stock touched a 52-week high of ₹1,721.85 on April 4, 2022, and a 52-week low of ₹1,271.75 on June 17, 2022.

The private lender has given a muted return of 2% to its shareholders in the last one year, while it surged over 14% in the past six months. On the year-to-date (YTD) basis, the counter has risen nearly 1% and by the same percentage in the last one month. In the long term horizon, the stock has surged nearly 71% in the last five years.

In an exchange filing on April 3, HDFC Bank said it posted a 16.9% year-on-year (YoY) rise in advances at ₹16,00,500 crore as of March 31, 2023, as compared to ₹13,68,800 crore in the same period last year. On the sequential basis, advances increased 6.32% from ₹15,06,800 crore in the December quarter of FY23.

As per the bank, domestic retail loans grew around 21% over March 31, 2022, and around 5% over December 31, 2022. The commercial and rural banking loans grew by nearly 30% YoY and around 9.5% sequentially; and corporate & other wholesale loans climbed by around 12.5% YoY and by around 4.5% on quarter-on-quarter (QoQ) basis.

During the quarter under review, the bank’s deposits aggregated to around ₹18,83,500 crore, a growth of around 20.8% over ₹15,59,200 crore in the corresponding period last year. Sequentially, it increased by 8.7% from ₹17,33,200 crore as of December 31, 2022. Segment-wise, retail deposits increased by around ₹1,06,700 crore during the quarter, and grew around 23.5% YoY and around 7.5% QoQ. The wholesale deposits also rose by 10% YoY and by 15.5% QoQ.

The bank’s CASA deposits, the amount of money that gets deposited in the current and savings accounts of bank customers, stood at around ₹8,36,000 crore in Q4 FY23, a growth of around 11.3% over ₹7,51,000 crore in Q4 FY22, and a growth of around 9.6% over ₹7,63,000 crore in Q3 FY23.