Mumbai:
HDFC Bank has reported a loan growth rate of 21% amid the lockdown for the quarter ended June 30. The bank’s loan book expanded to Rs 10 lakh crore at the end of the quarter from Rs 8.3 lakh crore in the year-ago period. Deposits grew 25% in April-June 2020 to touch Rs 11.9 lakh crore from Rs 9.5 lakh crore in the previous year.
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.
The growth rate was higher than the same period in the previous fiscal, when
HDFC Bank had a smaller balance sheet. In the first quarter of FY20, the private bank had reported an 18.5% increase in total deposits to Rs 9.5 lakh crore, while total advances had risen by 17.1% to Rs 8.3 lakh crore.
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% year-on-year to Rs 138.7 lakh crore till June 19. This means HDFC Bank has a market share of around 8.5% in deposits.
The loan growth has been almost twice as fast for the bank. Total bank
credit grew 6.2% to Rs 102.5 lakh crore, while HDFC Bank’s credit growth is three and a half times that of the industry, giving it a market share of around 9.5%. The exact market share numbers will be known only after the RBI releases data for the industry for the last fortnight of June.