HDFC Bank Mobilises Over ₹1.5 Trillion in Deposits in Q2 as Total Base Reaches ₹33.28 Trillion

India's largest private sector lender, HDFC Bank, mobilised more than ₹1.5 trillion in deposits during the July-September quarter, taking its period-end deposit base to ₹33.28 trillion (₹33,275 billion) as of September 30. According to the bank's provisional quarterly business update, period-end deposits surged 18.8% year-on-year and 4.9% sequentially, reflecting robust retail mobilization and liquidity accretion.

Average deposits during the quarter grew 16.8% year-on-year to ₹31.67 trillion, compared with ₹27.11 trillion in the year-ago period.

Deposit Mix and the FCNR(B) Window

The acceleration in liabilities was heavily supported by term deposits, reflecting ongoing saver preference for higher yields in a competitive domestic interest-rate environment:

• Time Deposits: Period-end term deposits climbed 22.8% year-on-year to ₹22.76 trillion, while average time deposits rose 19.7% to ₹21.95 trillion.
• CASA Balances: Low-cost current account and savings account (CASA) deposits rose at a moderate pace, advancing 10.8% year-on-year to ₹10.52 trillion on a period-end basis and 10.7% to ₹9.71 trillion on an average basis.

The lender also capitalised significantly on the Reserve Bank of India's (RBI) concessional Foreign Currency Non-Resident (Bank) [FCNR(B)] swap window, which ran through August 31. HDFC Bank mobilised $11.5 billion (approximately ₹1.10 trillion) in foreign currency deposits under this regulatory window. Against these inflows, the bank’s overseas branches extended loan facilities worth $5.7 billion (₹54,770 crore), while standby letters of credit issued to other lenders against the deposits totalled $3.1 billion (₹29,340 crore). Furthermore, between June and August, HDFC Bank issued $2.5 billion (₹23,960 crore) in dollar-denominated senior unsecured bonds.

Loan Book Expansion

On the asset side, HDFC Bank's gross advances increased 16.3% year-on-year to ₹32.20 trillion as of September 30, up from ₹27.69 trillion in the prior-year period. Period-end advances under management expanded 15.3% to ₹33.08 trillion.

Average advances under management—which adjust for inter-bank participation certificates, bills rediscounted, and securitisations—stood at ₹31.87 trillion, marking a 14.0% increase over ₹27.95 trillion reported in the corresponding quarter of the previous year.

Because deposit growth (18.8%) outpaced gross advances growth (16.3%), the bank made meaningful headway in rebalancing its credit-deposit (CD) ratio, an area closely monitored by the RBI and institutional investors following the merger with parent HDFC Ltd.

Market Reaction and Leadership Transition

The release of the Q2 operational figures coincided with regulatory approval for leadership succession at the banking bellwether. The RBI approved the appointment of ICICI veteran Anup Bagchi as MD and CEO of HDFC Bank for a three-year term effective October 27, succeeding Sashidhar Jagdishan.

Following the announcements, shares of HDFC Bank advanced nearly 2% to an intraday high of ₹734 on the BSE before consolidating around ₹725.55, bringing the lender's market capitalisation to approximately ₹11.17 lakh crore. Brokerages noted that while CASA growth remains relatively subdued across the banking system, HDFC Bank's ability to maintain high double-digit liability growth positions it well to protect liquidity buffers and sustain credit deployment without compromising underwriting discipline.

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