Shares of HDFC Bank climbed more than 2% on Monday after the country’s largest private sector lender reported a stronger-than-expected business update for the April-June quarter of FY27. The upbeat numbers reassured investors about the bank’s steady growth, helping the stock outperform the broader market.
HDFC Bank reported gross advances of around ₹27.3 lakh crore as of June 30, marking a 12.7% year-on-year increase. On a sequential basis, loans grew by about 2.5%, reflecting healthy credit demand across segments.
The bank also posted strong growth in deposits. Total deposits rose 16.2% from a year ago to nearly ₹28.1 lakh crore, while quarterly growth stood at around 5.1%. The improvement was driven by higher customer deposits and continued focus on strengthening the bank’s funding base.
One of the biggest positives was the rise in CASA (Current Account and Savings Account) deposits, which increased to about ₹9.8 lakh crore. Although the CASA ratio remained under pressure at around 34.9%, analysts said the steady improvement in low-cost deposits was encouraging.
Investors welcomed the update as it suggested that HDFC Bank continues to deliver stable growth despite a challenging interest rate environment and intense competition in the banking sector. The strong deposit growth also eased concerns over funding costs following the bank’s merger with HDFC Ltd.
The positive business update lifted market sentiment, with HDFC Bank emerging among the top gainers on the benchmark indices during Monday’s trading session. Banking stocks also received support after several private lenders reported healthy quarterly business numbers.
Also Read: Centre orders Meta to remove CSAM Ads