HDFC Bank’s Q1: Deposit Boom Signals Growing Customer Trust

Image Source: The Financial Express

HDFC Bank reported a 0.4% quarter-on-quarter (Q/Q) increase in gross advances as of June 2025, reflecting a cautious lending approach amid a shifting macro environment.

Deposits saw a robust 5.1% Q/Q rise at the end of June, signaling renewed customer confidence and effective deposit mobilization strategies.

The bank’s focus on deposit growth outpaced loan expansion this quarter, aligning with its ongoing strategy to optimize the credit-deposit (CD) ratio and ensure long-term balance sheet stability.

The sequential uptick in deposits is expected to support future lending capacity and improve liquidity, positioning HDFC Bank favorably for upcoming quarters.

Asset quality remains stable, with no major deterioration reported, and the bank continues to maintain a healthy capital adequacy ratio.

HDFC Bank’s management reiterated its commitment to prudent risk management, digital innovation, and expanding its retail and rural banking footprint.

The bank’s performance this quarter is seen as a reflection of its post-merger consolidation phase, with a focus on sustainable growth and operational efficiency.

Industry analysts note that the strong deposit growth provides a buffer for the bank to accelerate advances in the coming quarters, especially as the economic outlook improves.

HDFC Bank remains India’s largest private sector lender by assets, and its steady performance is closely watched as a bellwether for the broader banking sector.

Source: Reuters, Moneycontrol, Economic Times