Shares of HDFC Bank fell more than 2 per cent on January 6, extending losses for a second straight session after the lender released its Q3 business update. The stock slipped to Rs 956 apiece, its lowest
level in over three months, and emerged among the top losers on the benchmark Sensex and Nifty indices.
HDFC Bank on January 5 reported a 9 per cent year-on-year rise in average advances under management — which include gross advances adjusted for inter-bank participation certificates, bills rediscounted, and securitisation or assignment — to Rs 28.64 lakh crore in Q3 FY26, compared with Rs 26.28 lakh crore in Q3 FY25.
Period-end advances under management rose 9.8 per cent YoY to Rs 29.46 lakh crore at the end of the quarter, while gross advances increased 11.9 per cent YoY to Rs 25.43 lakh crore.
On the liabilities side, average deposits grew 12.2 per cent to Rs 27.52 lakh crore, while CASA deposits rose 9.9 per cent YoY to Rs 8.18 lakh crore during the quarter.
Motilal Oswal Financial Services maintained a ‘Buy’ rating on the stock, citing healthy momentum in advances growth. However, analysts at Nomura pointed out that slower deposit growth constrained lending expansion during the quarter, with the credit-deposit (CD) ratio — which measures loans as a percentage of deposits — nearing 100 per cent.
Nomura added that stronger deposit inflows will be crucial for HDFC Bank to accelerate loan growth going forward.
HDFC Bank shares have declined around 3 per cent over the past five days and more than 4 percent in the last one month. The stock is still up over 12.5 per cent over the past year and has gained more than 34 per cent over the last five years.
