HDFC Bank has surpassed its target of collecting ₹1 trillion in deposits during a quarter for the first time since announcing its merger with HDFC in April last year, Business Standard reported.
During the January–March quarter (Q4) of FY23, the country’s largest private sector lender mopped up over ₹1.5 trillion in deposits.
This is a record for the bank, which saw its deposit base touch ₹18.88 trillion. According to the bank’s disclosure to the exchanges, its deposits grew by 21 per cent year-on-year (YoY) in Q4, a multi-quarter high.
Sequentially also, deposits saw a growth — of 8.7 per cent. HDFC Bank’s deposit growth is much higher than the industry, which is growing around 10 per cent. However, the bank has fallen short of its yearly target of ₹4 trillion for deposits in a financial year.
In FY23, the bank mopped up ₹3.24 trillion, up 45 per cent compared to last year (FY22). It had earlier garnered over ₹1 trillion in deposits in a quarter only once since 2015. In Q4 of FY22, deposit mobilisation by the bank was ₹1.13 trillion.
“The over 1,500 branches likely to be added in FY23 will further give impetus to deposit mobilisation in FY24. For a ~4-trillion deposit mobilisation target in FY24E, HDFC Bank needs to achieve 25 per cent YoY growth in incremental deposits for FY24E. This is achievable in our view,” he added.
The bank set itself a target of mobilising ₹1 trillion in deposits every quarter, aggregating to ₹4 trillion in a financial year. This is because it would need approximately ₹3.5 trillion in deposits to maintain the 18–20 per cent growth it has sustained over the last few years on the asset sides.
Around ₹5–6 trillion of HDFC Ltd assets will also get added to the bank’s existing assets when the merger takes place.
HDFC Bank has requested the Reserve Bank of India (RBI) for a phased-in approach in respect of statutory liquidity ratio (SLR)/cash reserve ratio (CRR), priority sector lending (PSL), grandfathering of certain assets and liabilities as well as in respect of some subsidiaries.