Summary:
HDFC Bank's share price rose 3% after its Q1 FY27 business update showed healthy growth in both advances and deposits. Gross advances crossed the ₹30 lakh crore milestone for the first time, while total deposits grew 14.7% year-on-year, reflecting continued balance sheet expansion. Investors will now focus on the bank's Q1 FY27 results on July 18 for details on margins, profitability, and asset quality.
HDFC Bank stock price advanced by 3% following the bank’s issuance of a provisional business update report for the quarter ended on June 30, 2026, on account of robust growth in advances and deposits. On July 4, 2026, the stock price stood at ₹825.45 at 11:42 AM. In the meantime, the stock witnessed a high of ₹825.25 and a low of ₹805.00. The number of shares traded were 320.40 lakh against a 30-day average of 379.60 lakh.
Despite the strong performance in the trading session, the stock continued to trade below 16.5% on a year-to-date basis. Nonetheless, the quarter-end business update report came as a good sign of healthy balance sheet growth in the coming future.
Provisional Update Ahead of Q1 FY27 Results
The HDFC Bank publishes an initial business statement every quarter prior to publishing its audited financial statements. This business statement gives an initial indication regarding the bank’s performance with regard to loans and deposits, but further details about the bank’s financial performance with regards to profitability and asset quality among others are published at a later stage. The date for publishing the bank’s Q1 FY27 results will be July 18, 2026.
Gross Advances Cross ₹30 Lakh Crore
The total outstanding advances had surpassed the mark of ₹30 lakh crore for the very first time. The gross advances were reported at around ₹30.61 lakh crore as on June 30, 2026, marking an increase of 15.4% year over year (YoY) and 3.4% sequentially, showing continuous progress in lending.
Advances Under Management (AUM), that includes off-balance sheet items like participation certificates issued by other banks, rediscounted bills and securitized/assigned advances, were recorded at ₹31.27 lakh crore, marking an increase of 12.4% YoY. The average AUM in Q1 FY27 increased by 10.8% YoY to ₹30.39 lakh crore.
Deposits Rise 14.7%; CASA Growth Moderates
As far as the liabilities are concerned, the average deposits in Q1 FY27 increased by 13.3% year-on-year to ₹30.11 lakh crore. It is primarily due to the increase in the average time deposits by 14.3% year-on-year to ₹20.54 lakh crore and increase in the average CASA deposits by 11.2% year-on-year to ₹9.57 lakh crore.
As per figures as on June 30, 2026, the total deposits increased by 14.7% year-on-year and 2.1% quarter-on-quarter to ₹31.71 lakh crore. The CASA deposits have increased by 9.4% year-on-year, but decreased by 3.3% quarter-on-quarter.
Credit-Deposit Trend Remains a Key Monitor
This update also revealed that the advances were increasing at a faster pace than the deposits, as the loan growth stood at 15.4% YoY while the deposit growth was seen at 14.7% YoY. This maintains the high credit-to-deposit ratio, an area that is being observed quite keenly in the banking industry.
However, the faster growth rate of time deposits as compared to the CASA deposits indicates that the customers still prefer fixed deposits in such a scenario. This, although, will help with deposits mobilization but may increase the bank’s cost of funds. The impact on the net interest margin and profitability can be analyzed after HDFC Bank declares its financials for the quarter ended June 30, 2026.
