HDFC Bank and Bank of Baroda Report Strong Loan Growth Amid Slower Deposit Increases
HDFC Bank, BoB report strong credit growth; deposits lag pace
Business Standard
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HDFC Bank and Bank of Baroda have reported significant loan growth, with HDFC Bank's gross advances rising 12% year-on-year to approximately ₹29.6 trillion and Bank of Baroda's advances up 16.23% to ₹14.30 trillion. However, deposit growth lagged behind at 14.4% and 12%, respectively, indicating a potential liquidity challenge.
- 01HDFC Bank's gross advances increased by 12% year-on-year.
- 02Bank of Baroda's global advances rose by 16.23% year-on-year.
- 03Deposits for HDFC Bank grew by 14.4%, while Bank of Baroda's deposits increased by 12%.
- 04Time deposits were the primary growth driver for HDFC Bank, rising 15.5%.
- 05Overall business growth for Bank of Baroda stood at nearly 14%.
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Recent provisional data from HDFC Bank and Bank of Baroda highlights a robust increase in loan growth, with HDFC Bank reporting a 12% year-on-year rise in gross advances to approximately ₹29.6 trillion as of March 2026. Meanwhile, Bank of Baroda's global advances surged by 16.23% to ₹14.30 trillion. Despite this impressive loan growth, deposits have not kept pace; HDFC Bank's deposits grew by 14.4% to ₹31.06 trillion, while Bank of Baroda's deposits increased by 12% to ₹16.49 trillion. Within HDFC Bank's deposits, time deposits were a significant contributor, growing 15.5% year-on-year, compared to a 12.3% increase in current and savings account (CASA) balances. CASA deposits reached ₹10.61 trillion, reflecting a 12.3% year-on-year rise. Bank of Baroda also reported strong growth in its domestic retail advances, which expanded by 17.93%. Overall, the banking sector is witnessing a trend where loan growth is outpacing deposit growth, raising concerns about liquidity management.
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The disparity between loan and deposit growth could affect liquidity in the banking sector, potentially leading to higher interest rates on loans and lower availability of credit for consumers.
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