HDFC Bank loans and advances grew over 23% in Q2; stock jump

 HDFC Bank loans and advances grew over 23% in Q2; stock jump

• HDFC Bank shares rose over 2% to ₹1,447 on BSE in early trading session on Tuesday

Shares of HDFC Bank rose over 2% in early trading session on Tuesday after the private sector lender shared its business update for the second quarter or Q2 FY23 of the current fiscal.

HDFC Bank's deposits grew by about ₹16,735 billion as of September, 2022, an increase of about 19% from ₹14,063 billion by September, 2021, and nearly 4.3% from ₹16,048 billion by June, 2022.

Meanwhile, its loans and advances are up about ₹14,800 billion as of September 30, 2022, a growth of about 23.5% from ₹11,988 billion in the year-ago period and 6% up from ₹13,951 billion in the previous quarter.

The bank's CASA deposits stood at ₹7,595 billion as of September 30, 2022, a year-on-year (YoY) growth of nearly 15% from ₹6,582 billion and over 3% growth from ₹7,346 billion as of June 30. , 2022. The CASA ratio of the bank was around 45% as on September 30, 2022, while it was 46.8% on September 30, 2021 and 45.8% as of June 30, 2022.

During the quarter ended September 30, 2022, the bank bought loans totaling ₹91.45 billion through the direct assignment route under home loan arrangement with Housing Development Finance Corporation Limited (HDFC), the bank informed in an exchange filing today.

In April, HDFC Bank announced that it would merge with the parent HDFC Bank to enable seamless delivery and leverage of HDFC Bank's large base of over 68 million customers and lending to the economy, inter alia. Will improve growth speed.

The proposed merger is meant to create a larger balance sheet and net worth that would allow greater flow of credit into the economy. It will also enable underwriting of big ticket loans including infrastructure loans, urgent need of the country.

Under this scheme, HDFC shareholders will receive 42 shares of HDFC Bank with a face value of ₹2 each for 25 shares of HDFC. In addition, HDFC's stake in HDFC Bank will lapse as per the amalgamation plan.