HDFC Bank Q4 Performance Shines with Soaring Advances Post-Merger

MUMBAI, April 4, 2024 – HDFC Bank’s stellar Q4 performance was driven by a remarkable surge in its lending portfolio following the merger with HDFC Limited in July 2023. The bank’s Q4 performance was characterized by a 55.4% year-on-year (YoY) growth in gross advances to ₹24.69 lakh crore as of March 31, 2024, up from ₹16.14 lakh crore a year ago.

The merger has significantly bolstered HDFC Bank’s Q4 performance by expanding its lending capabilities, enabling it to cater to a broader range of customers across various segments. The bank’s Q4 performance in the domestic retail loans segment was particularly impressive, with a 108.9% YoY growth, reflecting the strong demand for housing and consumer loans. Moreover, the Q4 performance in commercial and rural banking loans grew by 24.6% YoY, indicating the bank’s commitment to supporting businesses and the agricultural sector.

Q4 Performance Highlights: Impressive Deposit Growth and Improving CASA Ratio

Complementing its strong Q4 performance in advances, HDFC Bank reported a 26.4% YoY increase in deposits, reaching ₹23.80 lakh crore in the fourth quarter. The bank Q4 performance in retail deposits witnessed a 27.8% YoY growth, while wholesale deposits increased by 19.4% YoY, reflecting the bank’s ability to attract funds across various customer segments.

The bank’s Q4 performance in current account and savings account (CASA) deposits, considered a key indicator of low-cost funding, was also impressive, with an 8.7% YoY rise to ₹9.09 lakh crore. HDFC Bank’s CASA ratio, a crucial metric in its Q4 performance, stood at 38.2% as of March 31, 2024, improving from 37.7% in the previous quarter, indicating a gradual enhancement in the bank’s funding mix.

Also Read | Tata Sons Trim TCS Stake to Raise Funds for New Ventures

Investors Cheer HDFC Bank Q4 Performance, Stock Surges

Investors welcomed HDFC Bank’s strong Q4 performance, with the bank’s shares surging nearly 3% in early trade on Thursday. At 9:20 am, HDFC Bank shares were trading at ₹1,524.35 apiece on the Bombay Stock Exchange (BSE), reflecting the market’s optimism about the bank’s Q4 performance and growth prospects.

Analysts attributed the stock’s positive performance to the bank’s ability to leverage the synergies from the HDFC merger effectively, resulting in a robust Q4 performance. The significant increase in advances and deposits, coupled with the improving CASA ratio, bodes well for the bank’s future profitability and market positioning.

HDFC Bank’s Q4 performance positions it favourably to navigate challenges and capitalize on opportunities in the Indian banking sector. The bank’s diversified portfolio, robust risk management practices, and strong brand equity are expected to support its growth trajectory and Q4 performance in the upcoming fiscal year.