HDFC Bank's Home Loan Portfolio Rises To Rs 48,000 Crore In Q2 Post-Merger With HDFC

This particular quarter was significant as it was the bank's first loan book update after the merger with mortgage financier HDFC Ltd. HDFC Bank had previously served as a distribution agent for HDFC

In the second quarter, the HDFC bank's retail loan portfolio saw an 85 per cent surge compared to the previous quarter and a significant 111.5 per cent increase over the same period last year.

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HDFC Bank's approved home loans amounting to Rs 48,000 crore during the July-September quarter of the financial year 2023-24 (Q2FY24). This marks a sequential growth of 14 per cent and a year-on-year (YoY) growth of 10.5 per cent when compared to the previous year's figures. This particular quarter was significant as it was the bank's first loan book update after the merger with mortgage financier HDFC Ltd. It's worth noting that HDFC Bank had previously served as a distribution agent for HDFC and had not directly disbursed home loans.

“Home loan disbursals during the first quarter post-merger were the best ever at Rs 480 billion. This is a growth of 14.0 per cent over the quarter ending June 30, 2023, and a growth of 10.5 per cent over the quarter ending September 30, 2022,” said HDFC Bank in a notification to the exchanges.

In the second quarter, the bank's retail loan portfolio saw an 85 per cent surge compared to the previous quarter and a significant 111.5 per cent increase over the same period last year. As part of its strategy, the bank has decided to reduce the non-individual loan portfolio inherited from erstwhile HDFC, resulting in a sequential decrease of 6.2 per cent. Consequently, the non-individual loan book decreased to Rs 1.03 trillion from Rs 1.09 trillion at the end of June, while the total book size stood at Rs 1.3 trillion as of September 30, 2022.

The bank's gross advances grew by Rs 1.1 trillion, reaching Rs 23.5 trillion in the second quarter. This reflects a 4.9 per cent increase over the proforma merged advances, which totaled Rs 22.4 trillion as of June 30, 2023.

 Commercial and rural banking loans experienced robust growth, expanding by approximately 29.5 per cent compared to September 30, 2022, and around 9.5 per cent over June 30, 2023. Meanwhile, corporate and other wholesale loans increased by approximately 8.0 per cent compared to September 30, 2022, and around 6.0 per cent over June 30, 2023.

The bank's deposits also witnessed significant growth, increasing by Rs 1.1 trillion to reach Rs 21.7 billion. This represented a growth of approximately 5.3 per cent over the proforma merged deposits, which totaled Rs 20.6 trillion as of June 30, 2023.

However, it's important to note that the ratio of current and savings account (CASA) deposits to total deposits declined to 37.5 per cent as of September 30, compared to 45.4 per cent in the year-ago period and 42.5 per cent in June 2023. This change was primarily attributed to the addition of HDFC's liabilities, which consisted largely of fixed deposits.