HDFC Bank Shares Gain 3% on Strong Q1 Business Update

Mumbai, July 6: HDFC Bank share price rose as much as 3% on Monday after the country’s largest private sector lender reported robust growth in advances and deposits for the quarter ended June 30, reinforcing investor confidence ahead of its June quarter earnings.

The stock climbed after the bank’s provisional business update showed healthy year-on-year growth across key operating metrics. The update comes at a time when investors are closely tracking banks’ ability to sustain loan growth while improving deposit mobilisation amid intense competition for funds. As of writing the stock was up 2.7% at Rs 823.

Advances cross ₹30 lakh crore

HDFC Bank’s gross advances stood at ₹30.61 lakh crore as of June 30, marking a 15.4% increase from ₹26.53 lakh crore in the corresponding period last year.

The steady increase in lending suggests credit demand remained resilient across retail, commercial and corporate segments during the quarter. The growth also indicates that the bank continues to expand its loan book following its merger with Housing Development Finance Corporation (HDFC).

Deposit growth remains healthy

The lender also reported healthy deposit mobilisation during the quarter. Total deposits rose 14.7% year-on-year to ₹31.71 lakh crore, compared with ₹27.64 lakh crore a year ago. Deposit growth has remained a key area of focus for investors and analysts as banks compete aggressively to attract retail deposits amid strong credit demand. A healthy deposit franchise helps lenders support loan growth while managing funding costs.

Current Account Savings Account (CASA) deposits stood at ₹10.26 lakh crore at the end of the June quarter, up 9.4% from a year ago.

Investors await June quarter earnings

The quarterly business update provides only operational data and does not include financial performance such as net profit, net interest income or asset quality. Investors will now shift their attention to HDFC Bank’s June quarter earnings, expected later this month.

Analysts will closely watch the lender’s net interest margins, provisioning, asset quality and management commentary on deposit growth and loan demand. Particular focus will also be on funding costs and the Reserve Bank of India’s policy actions.

The healthy growth in advances and deposits suggests HDFC Bank has maintained business momentum at the start of FY27. The operational update also indicates that the lender continues to strengthen its balance sheet, even as the banking sector grapples with elevated competition for deposits and evolving interest rate dynamics.

Source: https://www.nseindia.com/get-quote/equity/HDFCBANK/HDFC-Bank-Limited