HDFC Bank’s Deposit Growth Outpaces Loan Expansion in Q1 FY25
HDFC Bank reported that its deposit growth outpaced loan growth in the first quarter of FY25, reflecting a strategic shift following its merger with Housing Development Finance Corporation (HDFC) last year.
As of June 30, 2025, total deposits stood at Rs 27.64 trillion, up 1.8% from the previous quarter. In comparison, gross advances rose marginally by 0.4% to Rs 26.53 trillion, the bank said in a regulatory filing.
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This trend comes as HDFC Bank continues to rebalance its funding profile post its merger with parent HDFC in July 2023. The deal significantly expanded its loan book, but added fewer deposits, putting the lender under pressure to mobilise fresh funds or recalibrate loan growth.
Shares of HDFC Bank, which carries the highest weight on the Nifty 50 index, were up 0.4% in early trade on Friday, while the broader index remained flat.
Industry-wide data from the Reserve Bank of India earlier indicated a cooling in overall credit growth, particularly in personal and credit card loan segments, following regulatory tightening.
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As competition intensifies for low-cost deposits, analysts suggest HDFC Bank’s current strategy signals a more cautious and balanced growth approach for India’s largest private sector bank.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
