HDFC Bank Deposit Growth Outpaces Loans After Merger

HDFC Bank reported a 16% year-on-year increase in deposits to ₹27.64 trillion in the first quarter of FY26, outpacing its loan growth of around 7–8% and surpassing industry deposit growth by 500–600 basis points. This robust deposit growth marks a return to stability following last year's merger with parent HDFC, which had temporarily raised concerns over the bank's loan-to-deposit ratio and asset-liability balance. Analysts view these results as a sign that HDFC Bank is now positioned to match or even exceed industry growth rates in the upcoming fiscal year, with improved margins and a more balanced funding mix. The bank's share price rose in response to the positive performance. Sector-wide, deposit growth is outpacing credit growth amid regulatory tightening on personal and credit card loans. Overall, HDFC Bank's performance indicates normalization and resilience post-merger, strengthening its position among private sector banks.