HDFC Bank shares hit three-month low on Q3 biz update; brokerages flag slower deposit growth

HDFC Bank share price

• HDFC Bank shares fell over 2 percent, extending losses after Q3 business update
• Q3 advances rose 9 percent YoY, but slower deposit growth limited lending
• Brokerages say strong deposit inflows needed for future loan growth

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The shares of HDFC Bank dropped more than 2 percent on January 6, extending notable losses for the second consecutive session after releasing Q3 business update.

The shares of the company rose to Rs 956 apiece, the lowest level seen by the heavyweight stock in more than three months. It is currently one of the top losers on the benchmark indices Sensex and Nifty.

HDFC Bank Q3 business update:

HDFC Bank on January 5 reported a 9 percent YoY rise in average advances under management (advances grossing up for inter-bank participation certificates, bills rediscounted and securitisation/assignment) to Rs 28.64 lakh crore in Q3 FY26, from Rs 26.28 lakh crore in Q3 FY25.

The lender's period end advances under management meanwhile rose 9.8 percent YoY to Rs 29.46 lakh crore at the end of the quarter, while gross advances jumped 11.9 percent YoY to Rs 25.43 crore.

HDFC Bank’s average deposits rose 12.2 percent to Rs 27.52 lakh crore, while CASA deposits gained 9.9 percent YoY to Rs 8.18 lakh crore during the quarter.

Brokerages on HDFC Bank:

Motilal Oswal Financial Services kept a ‘Buy’ call on the stock, noting down the healthy momentum in advances growth. Analysts at Nomura said that slower deposit growth limited increase in lending this quarter as the credit-deposit (CD) ratio, which measures loans given as a percentage of deposits, hit nearly 100 percent.

It added that HDFC Bank needs strong deposit inflows to accelerate loan growth going forward.

HDFC Bank share price:

HDFC Bank shares have fallen 3 percent in the past five days, and over 4 percent in the past one month. The stock rose over 12.5 percent in the past one year, and over 34 percent in the past five years.

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