HDFC Bank loans and advances increase by more than 23% in the second quarter; stocks jump

Shares of HDFC Bank jumped more than 2% for 1,447 apiece on BSE in Tuesday’s first trading session after the private sector lender shared its trade update for the second quarter of the current fiscal year or the second quarter of FY23.

HDFC Bank’s deposits totaled approximately 16,735 billion in September 2022, i.e. growth of around 19% over 14,063 billion in September 2021 and growth of around 4.3% over 16,048 billion in June 2022.

Meanwhile, its loans and advances totaled approximately 14,800 billion as of September 30, 2022, i.e. growth of around 23.5% over 11.988 billion compared to the period a year ago and 6% more 13.951 billion compared to the previous quarter.

The bank’s CASA deposits aggregated to 7,595 billion as of September 30, 2022, i.e. growth of around 15% over 6.582 billion year-on-year (YoY) and more than 3% growth of 7,346 billion as of June 30, 2022. The Bank’s CASA ratio stood at approximately 45% as of September 30, 2022, compared to 46.8% as of September 30, 2021 and 45.8% as of June 30, 2022.

During the quarter ended September 30, 2022, the Bank purchased loans comprising 91.45 billion by way of direct assignment under the housing loan agreement with Housing Development Finance Corporation Limited (HDFC), the bank informed in an exchange filing today.

In April, HDFC Bank announced that parent company HDFC will merge with the bank to enable seamless delivery of home loans and leverage HDFC Bank’s large customer base of over 68 million and, among other things, improve the pace of credit growth in the economy.

The proposed merger aims to create a significant balance sheet and net worth that would allow a greater flow of credit into the economy. It will also allow the underwriting of larger loans, including infrastructure loans, an urgent need of the country.

Under the plan, HDFC shareholders will receive 42 HDFC Bank shares with a par value of Re1 each for 25 HDFC shares with a par value of 2 each. In addition, HDFC’s stake in HDFC Bank will be terminated in accordance with the merger plan.

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