The sequential decline in loan book is mainly due to continued shedding of low yielding corporate book, including that of erstwhile HDFC.
Gopika Gopakumar
Published4 Jul 2024, 08:49 PM IST
The bank’s shares fell 2% to ₹1,726.60 during trade on Thursday, a day after the stock rallied 3% to hit a record high.(Reuters)
Mumbai: HDFC Bank Ltd reported a sequential fall in both advances and deposit growth at the end of the first quarter, as per the pre-quarter update of the bank released on Thursday.
Advances growth declined 0.8% quarter on quarter to ₹24.87 trillion at the end of June 2024 compared to ₹25.1 trillion at the end of March 2024. The sequential decline in loan book is mainly due to continued shedding of low yielding corporate book, including that of erstwhile HDFC Ltd.
The deposits growth also declined 0.03% quarter on quarter to ₹23.79 trillion at the end of June 2024.
However, on a year-on-year (y-o-y) basis, the advances showed a growth of 52.6% and deposits grew by 24.4%.
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The private sector lender's low cost deposits current and savings accounts (CASA) ratio as a proportion of total deposits was down at 36.3% at the end of June 2024 compared to 38.2% at the end of March 2024.
Liquidity coverage ratio, however, improved to 123% for the quarter compared to 115% in the previous quarter.
The bank's shares fell 2% to ₹1,726.60 during trade on Thursday, a day after the stock rallied 3% to hit a record high on expectations of high passive fund inflows amid likely weight increase in MSCI index. The latest shareholding pattern of HDFC Bank shows foreign institutional investors (FIIs) ownership in the bank dropped below 55%, which is expected to boost the stock’s weightage in the MSCI index, leading to higher passive inflows.