NEW DELHI: Shares of HDFC Bank climbed 4 per cent in Monday’s trade after the private bank said its advances jumped 21 per cent to Rs 10,04,500 crore as of June 30 compared with Rs 8,29,700 crore in the year-ago quarter. The bank had advances totalling Rs 9,93,700 crore as of March 31, 2020.
In a filing to BSE on Saturday, the bank said its deposits aggregated to Rs 11,89,500 crore as of June 30, 2020, up 25 per cent over Rs 9,54,600 crore in the year-ago quarter. At the end of March, deposits stood at Rs 11,475,00 crore for the private bank.
Following the update, the stock rose 3.97 per cent to hit a high of Rs 1,116.85 on BSE.
The bank’s CASA ratio stood at around 40 per cent as of June 30 compared to 39.7 per cent as of June 30, 2019, and 42.2 per cent as of March 31, 2020.
“During the quarter ended June 30, the bank purchased loans aggregating Rs 1,376 crore through the direct assignment route under the home loan arrangement with HDFC,” HDFC Bank said.
In absolute terms, the bank has managed to grow its loans by Rs 10,800 crore during the lockdown quarter, while its deposits rose by Rs 42,000 crore. The higher increase in deposits was an outcome of the flight to safety as the country’s largest private bank was seen as a safe haven at a time when some private lenders saw deposits being pulled out, TOI reported.
HDFC Bank appears to have gained market share as its deposit growth rate has been nearly double than the industry. According to RBI data, the banking system’s deposits grew 11 per cent year-on-year to Rs 138.7 lakh crore till June 19. This means HDFC Bank has a market share of around 8.5 per cent in deposits.