HDFC Bank reports 23% increase in loan book in Q2 FY23

6 Oct 2022 , 08:06 AM

The most valuable lender in India by market cap, HDFC Bank, outperformed the market by growing its loan book by more than 23% in the three months leading up to September. This is an indication of the continued domestic credit demand, which appears unaffected by the rising likelihood of an impending recession in the wealthier areas on either side of the Atlantic water margin.

The lender’s overall advances now total Rs14.80 lakh crore, according to preliminary figures. When compared to the same time last year, the overall loan book was Rs11.98 lakh crore. Other lenders also reported high demand for capital, supporting the notion that India is well-positioned to outperform peers during a time when many parts of the world economy are thought to be struggling.

The bank also reported a 19% increase in deposits, bringing its total book to Rs16.73 lakh crore at the end of the third quarter of September. This contrasts with the previous year’s total of Rs14.06 lakh crore.

In August, credit growth increased 14.8% over the previous year, setting a new high. Credit growth was driven by the services and industrial sectors, rather than by agriculture and retail. At 19.5%, retail credit growth was still very strong. Consumer durables, credit card debt, and auto loans all saw an increase in retail.

Late Monday night, IndusInd Bank also issued proforma figures showing strong credit growth of 18% in the third quarter, primarily due to ongoing acceleration in the retail book including microfinance, commercial vehicle, as well as the corporate book. It currently has a Rs2.59 lakh crore loan book. The bank announced that deposits increased by 15% to Rs3.15 lakh crore.

Yes Bank, a private lender, reported an 11.6% increase in loans to Rs1.92 lakh crore. Provisional figures issued for the September quarter showed that it increased its total deposits by 13.2% to Rs2 lakh crore.

Mahindra & Mahindra Financial Services, a non-bank lender, reported that it disbursed Rs4,080 crore, representing a 110% year-over-year rise. According to the corporation, the first half would likely see disbursements of around Rs21,300 crore.

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