HDFC Bank's Merged Loan Book With HDFC Reaches $273.8 Bn By June End
HDFC Bank, one of India's leading financial institutions, announced that its merged loan book with Housing Development Finance Corporation (HDFC) reached approximately 22.45 trillion rupees ($273.77 billion) by the end of the June quarter. This milestone was achieved following the completion of the $40 billion merger between HDFC Bank and HDFC Ltd. on 1 July. The merger positioned HDFC Bank among the world's top 10 banks in terms of market capitalisation.
On a proforma basis, HDFC Bank reported a 13.1 per cent increase in its loan book for the June quarter compared to the previous year. However, it should be noted that some numbers may not be directly comparable due to the merger. The combined entity's deposits also showed a notable growth of 16.2 per cent year-on-year, totaling around 20.64 trillion rupees as of the end of June.
HDFC Bank disclosed that the liquidity coverage ratio for the merged entity, which indicates the amount of cash-like assets held by the bank, stood at approximately 120 per cent on a proforma basis for the quarter ended 30 June. This reflects the bank's strong liquidity position and ability to meet its short-term obligations.
In terms of standalone figures, HDFC Bank's gross advances for the June quarter reached about 16.16 trillion rupees, representing a growth of approximately 15.8 per cent. Simultaneously, deposits rose by 19.2 per cent to approximately 19.13 trillion rupees, showcasing a robust expansion in the bank's deposit base.
The merger between HDFC Bank and HDFC Ltd. has solidified the institution's position as a key player in the Indian banking sector. With a substantial loan book, strong deposit growth, and a high liquidity coverage ratio, HDFC Bank continues to demonstrate its resilience and ability to navigate the evolving financial landscape.
