HDFC Bank Reports Strong Q1 FY26 Growth in Advances and Deposits, CASA Faces Subtle Decline
By Ankur Chandra | Updated at: Oct 13, 2025 05:33 PM IST
Mumbai, 4 July 2025: HDFC Bank Ltd (NSE: HDFCBANK, BSE: 500180) has announced its key business updates for the first quarter of FY26, reporting healthy year-on-year growth in both advances and deposits. While core banking metrics remain strong, the CASA ratio saw a slight sequential dip, suggesting a potential customer shift towards higher-yielding term deposits.
Following HDFC Bank’s Q1 FY26 update showing strong growth in advances and deposits, the stock saw a modest rise during early trade on 4 July 2025. At 9:28 am IST, it was trading at ₹1,997.00, up ₹9.90 or 0.50% from the previous close. The stock opened at ₹1,987.10, hit a high of ₹2,003.50, and stayed above its opening price. With a market cap of ₹15.31 lakh crore, it remains near its 52-week high of ₹2,027.10. The bank holds a P/E ratio of 21.61 and offers a 1.10% dividend yield, with a quarterly payout of ₹5.49 per share.
Advances Cross ₹27.8 Lakh Crore, Driven by Broad-Based Lending Momentum
HDFC Bank’s total period-end advances under management rose by 8.0% year-on-year to ₹27,820 billion as of 30 June 2025, compared to ₹25,750 billion a year earlier. On a quarter-on-quarter basis, the growth was steady at 0.3%, reflecting a stable lending trajectory.
Advances Summary
| Metric | Jun 30, 2024 | Mar 31, 2025 | Jun 30, 2025 | QoQ | YoY |
|---|---|---|---|---|---|
| Average Advances (₹ billion) | 25,327 | 26,955 | 27,423 | 1.7% | 8.3% |
| Period-end Advances (₹ billion) | 25,750 | 27,733 | 27,820 | 0.3% | 8.0% |
| Gross Advances (₹ billion) | 24,869 | 26,435 | 26,530 | 0.4% | 6.7% |
The bank also securitised or assigned loans worth ₹33 billion during the quarter, continuing its strategy to optimise the balance sheet and enhance asset-liability management.
Deposits Rise 16.4% YoY, With Time Deposits Leading the Increase
Average deposits grew by a robust 16.4% YoY to ₹26,580 billion in Q1 FY26, supported by a 22.1% increase in average time deposits. Sequentially, the deposit base expanded by 5.1%. However, CASA deposit growth was more measured at 6.1% YoY, with a marginal 0.8% dip in period-end CASA deposits over the previous quarter.
Deposit Summary
| Metric | Jun 30, 2024 | Mar 31, 2025 | Jun 30, 2025 | QoQ | YoY |
|---|---|---|---|---|---|
| Average Deposits (₹ billion) | 22,831 | 25,280 | 26,580 | 5.1% | 16.4% |
| CASA Deposits (avg) | 8,106 | 8,289 | 8,604 | 3.8% | 6.1% |
| Time Deposits (avg) | 14,725 | 16,991 | 17,976 | 5.8% | 22.1% |
| Period-end Deposits | 23,791 | 27,147 | 27,640 | 1.8% | 16.2% |
| CASA Deposits (period-end) | 8,636 | 9,446 | 9,370 | (0.8%) | 8.5% |
| Time Deposits (period-end) | 15,154 | 17,702 | 18,270 | 3.2% | 20.6% |
The modest decline in CASA deposits over the quarter indicates a gradual preference for fixed deposits, possibly influenced by a rising interest rate environment.
Performance Reflects Steady Growth with Subtle Deposit Rebalancing
The Q1 FY26 update underscores HDFC Bank’s continued strength in core lending and deposit mobilisation. While advances and overall deposit volumes remain strong, the changing mix in deposits hints at a market response to rate movements. These figures are provisional and subject to statutory audit review in the upcoming limited review process.
About HDFC Bank: India’s Largest Private Lender by Assets
HDFC Bank Ltd is India’s largest private sector bank by total assets, listed on both the NSE and BSE. The bank offers a wide spectrum of financial services, including retail and wholesale banking, treasury operations, and digital banking solutions. It serves individuals, businesses, and institutions across India with a pan-India presence and robust digital infrastructure.
REF: https://nsearchives.nseindia.com/corporate/HDFCBANK_04072025083605_SE_intimation-_Quarterly_Updates.pdf
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