HDFC Bank saw an increase in both loans and deposits in the December quarter, reflecting the popularity of HDFC Bank among the public. On Monday, January 5th, HDFC Bank reported that loan demand increased due to the festive season and tax relief.
Add businessleague.in as a Preferred Source
HDFC Bank is India’s largest private bank. Millions of people across the country trust HDFC Bank, deposit their money with it, and enjoy its banking services. HDFC Bank has now seen an increase in both loans and deposits in the December quarter, demonstrating its popularity among the public. On Monday, January 5th, HDFC Bank announced that the festive season and tax relief have increased loan demand, directly benefiting the bank.
HDFC Bank’s loans and deposits increase
According to HDFC Bank, total loans grew by 2.7 percent to ₹28.45 trillion as of December 31, 2025. The bank’s total deposits also increased by 2.1 percent to ₹28.6 trillion, according to an official statement from HDFC Bank. This quarterly performance is considered another significant step towards achieving balance for HDFC Bank. Experts had predicted strong loan demand between October and December. This was largely due to increased spending during the festive season and the benefits of government-imposed tax cuts. Due to the tax cuts and festivals, people have taken out more loans for housing, vehicles, and other needs, strengthening the banking sector.
HDFC Bank’s strategy after merger
In July 2023, HDFC Bank merged with its parent, Housing Development Finance Corporation (HDFC). Following the merger, the bank received a significant loan volume, but fewer deposits. This pressured the bank to either increase deposits or slow down loan growth. Following the merger, the bank changed its strategy and focused on consistently growing deposits faster than loans. This aimed to maintain a balanced loan-to-deposit ratio (LDR). Currently, the bank’s goal is to control this ratio to maintain financial stability.
HDFC Bank has also stated that it expects loan growth to be equal to the overall banking industry in fiscal year 2026, and could even exceed it in 2027. The bank aims to restore its loan-to-deposit ratio to its previous level of 85 to 90 percent by 2026-27.
Add businessleague.in as a Preferred Source
