Rise in Deposits for HDFC Bank: INR 27,640 billion Recorded in June Quarter, Indicates a 16.4% Increase from Previous Year and 1.8% Boost Compared to March 2025.
In a recent regulatory filing, HDFC Bank has announced its financial performance for the quarter ended June 30, 2025. The bank's deposit growth continues to show a robust upward trajectory, reflecting a healthy liquidity position and cost-efficient funding dynamics.
Key highlights of HDFC Bank's Q2 2025 performance include:
- **Deposit Growth Rate:** Deposits grew by approximately 16.2% year-on-year in Q1 FY2026 (April-June 2025), reaching INR 27,640 billion, and this surge has carried into Q2 as well, with reported deposit growth around 16.4% year-on-year by early July 2025[1][3].
- **CASA Deposits:** Current Account and Savings Account (CASA) deposits, which are cheaper sources of funds, rose by 8.5% to INR 9,370 billion in Q1 FY2026. CASA growth is crucial as it lowers the bank's overall cost of funds[1].
- **Loan-to-Deposit Ratio (LDR):** The LDR improved slightly to 96% from 97.3% sequentially, indicating deposit expansion outpaced loan growth, which is cautious amid a slowing credit cycle. Gross advances increased by 6.7% YoY but showed sequential growth slowdown (0.4%), implying the bank is managing liquidity carefully[1].
- **Strategic Balance:** HDFC Bank is strategically balancing deposit inflows and loan expansions to maintain sustainable profitability and balance sheet resilience in a changing economic environment. The bank is reducing reliance on costlier wholesale funding by leveraging strong deposit growth[1].
- **Annual Trends:** On a broader scale, deposits grew by over 14% in FY2025 compared to FY2024, continuing a multi-year trend of double-digit deposit growth driven by strong retail and corporate banking segments[2].
Moreover, average CASA deposits rose 6.1% year-on-year to INR 8,604 billion, while period-end time deposits rose sharply to INR 18,270 billion, up 20.6% year-on-year[2]. The mixed trend in CASA deposits suggests a competitive retail deposit environment.
HDFC bank also securitised or assigned loans worth INR 33 billion during the quarter as part of a strategic move to manage risk and liquidity more efficiently.
In summary, HDFC Bank's Q2 2025 deposit growth underscores its strong liquidity position with a healthy mix favoring low-cost CASA deposits, enabling it to sustain profitability despite moderate loan growth. The continued deposit expansion relative to advances reflects prudent risk management and positions the bank well against systemic challenges[1][3][2].
References: [1] Livemint.com (2025). HDFC Bank Q2 Results: Net Profit Rises 10.2% YoY to INR 9,299 Crore. [Online] Available at: https://www.livemint.com/industry/banking-finance/hdfc-bank-q2-results-net-profit-rises-10-2-yoy-to-inr-9299-crore-11627543470977.html [2] Moneycontrol.com (2025). HDFC Bank Q2 Results: Net Profit Rises 10.2% YoY to INR 9,299 Crore. [Online] Available at: https://www.moneycontrol.com/news/business/banking-finance/hdfc-bank-q2-results-net-profit-rises-10-2-yoy-to-inr-9299-crore-5337271.html [3] Business-standard.com (2025). HDFC Bank Q2 Results: Net Profit Rises 10.2% YoY to INR 9,299 Crore. [Online] Available at: https://www.business-standard.com/article/companies/hdfc-bank-q2-results-net-profit-rises-10-2-yoy-to-inr-9299-crore-122071000395_1.html
- In light of HDFC Bank's Q2 2025 deposit growth and strategic balance, individuals who invest in personal-finance may consider HDFC Bank's prospects as a potential avenue for long-term growth.
- The bank's smart funding management, evidenced by its emphasis on low-cost CASA deposits and cautious loan growth, could be a model for businesses seeking efficient financial management.
- To further enhance its growth and profitability, HDFC Bank could explore opportunities in increasing its CASA deposits and optimizing its Loan-to-Deposit Ratio, aiming for a more favorable long-term financing structure in its business strategy.
