HDFC Bank posts 19.5% loan growth in Q3
HDFC Bank agreed to take over Housing Development Finance Corporation, a domestic mortgage lender, in a deal valued at about $40 billion last year.
Private sector lender on Wednesday said it has recorded a 19.5% increase in credit growth to Rs 15 lakh crore for the third quarter ended December 2022.
The bank had outstanding credit at Rs 12.6 lakh crore at the end of December 31, 2021, HDFC Bank said in a regulatory filing.
On a sequential basis, the bank posted a 1.8% growth over the September 2022 quarter's figure of Rs 14.7 lakh crore.
As per the bank's internal business classification, domestic retail loans grew by around 21.5% over December 31, 2021, and around 5% over September 30, 2022; commercial and rural banking loans grew by around 30% over December 31, 2021, and around 5% over September 30, 2022.
Corporate and other wholesale loans grew by around 20% over December 31, 2021, but were lower by around 1% compared to September 30, 2022, it said.
The bank's deposits aggregated to approximately Rs 17.3 lakh crore as of December 31, 2022, a growth of around 19.9% over Rs 14.4 lakh crore in the year-ago period.
With regard to Current Account Saving Account (CASA) deposits, it said they aggregated to approximately Rs 7.6 lakh crore as of December 31, 2022, a growth of around 12% over the same period a year ago.
During the quarter ended December 31, 2022, the bank purchased loans worth Rs 8,892 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation (HDFC), its parent entity.
Last April, the country's largest private lender HDFC Bank agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan.
The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.
Once the deal is effective, HDFC Bank will be 100% owned by public shareholders, and existing shareholders of HDFC will own 41% of the entity.
Edited by Suman Singh
