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HDFC Bank Loan Growth Rebounds as Deposit and Liquidity Questions Persist
HDFC Bank made many more loans in the September 2026 quarter than it did a year earlier.
Its loans grew by 15.3%, while its deposits grew by 18.8%.
Deposits are money customers put in the bank, and banks use them to help make loans.
The bank said some of its overseas lending was made using money raised through special foreign-currency deposits.
The bank did not say exactly which types of customers or businesses accounted for most of the latest loan growth.
Its loans were still close in size to its deposits, so investors may watch how it manages its funding.
Investors will also watch whether the bank can keep growing and improve its financial performance.
The article reported that the bank’s shares fell 2% on Monday.
HDFC Bank’s advances rose 15.3% year over year to ₹33.07 lakh crore at the end of the September 2026 quarter, up from 10% growth in September 2025 and 7.1% in September 2024.
Deposits grew 18.8% to ₹33.27 lakh crore, including 22.8% growth in time deposits; the reported credit-to-deposit ratio was about 99.4%.
The bank said overseas branches lent $5.7 billion against $11.5 billion raised through FCNR (B) deposits during the quarter.
HDFC Bank did not specify which loan segments drove the latest growth; the article notes earlier strength in small and mid-market businesses and business banking.
The article says investors will watch whether growth can be sustained alongside liquidity, net interest margin and governance concerns; the stock closed 2% lower at ₹705 on Monday.
- Who
- HDFC Bank
- What
- The bank reported 15.3% year-over-year loan growth and 18.8% deposit growth.
- Where
- India; the bank also reported lending through its overseas branches.
- When
- At the end of the September 2026 quarter.
- Why
- The article discusses the bank’s recovery in loan growth and investors’ attention to growth, funding and governance.
Growth and opportunity
Funding and execution concerns
Loan growth
Growth and opportunity
The 15.3% increase in advances is a strong rebound from the 10% growth recorded in September 2025 and 7.1% in September 2024.
Funding and execution concerns
The bank did not identify which loan segments drove the latest increase, and investors will need to assess whether the growth can be sustained.
Funding position
Growth and opportunity
Deposits grew faster than loans, rising 18.8% year over year, and the bank also raised FCNR (B) deposits from overseas.
Funding and execution concerns
The reported credit-to-deposit ratio of about 99.4% remains high compared with the 75%–80% range cited in the article as typical for banks.
Investor outlook
Growth and opportunity
The article points to strong operating growth and relatively low valuation compared with some historical levels and a named competitor.
Funding and execution concerns
Investors are also monitoring net interest margins, governance concerns and whether the bank can sustain growth; the stock fell 2% on Monday.
Key facts
- Advances
- ₹33.07 lakh crore, up 15.3% year over year
- Deposits
- ₹33.27 lakh crore, up 18.8% year over year
- Time deposits
- ₹22.75 lakh crore, up 22.8% year over year
- Credit-to-deposit ratio
- About 99.4% in the September 2026 quarter
- FCNR (B) deposits raised
- $11.5 billion, or nearly ₹1.10 lakh crore
- Overseas lending against these deposits
- $5.7 billion, or nearly ₹54,700 crore
- Share price
- Closed 2% lower at ₹705 on Monday, according to the article
Sources
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