HDFC Bank Q4 Update: Deposits Surge 14.4%, Advances Grow 12%

Introduction

HDFC Bank, India's largest private sector lender, has released its business update for the fourth quarter ending March 31, 2026. The preliminary data reveals strong double-digit growth in both deposits and advances, signaling sustained momentum for the financial year. The bank's performance in these key areas provides an early indication of its operational health ahead of the detailed financial results scheduled for later this month.

Robust Growth in Advances

The bank's loan book showed significant expansion during the quarter. According to the exchange filing, gross advances aggregated to approximately ₹29.60 lakh crore as of March 31, 2026. This reflects a solid year-on-year (YoY) growth of 12.0% compared to ₹26.44 lakh crore recorded on March 31, 2025. This marks a notable acceleration from the 5.4% YoY advance growth reported in the corresponding quarter of the previous fiscal year, suggesting a renewed focus on credit expansion.

Furthermore, the bank's period-end advances under management stood at around ₹30.58 lakh crore, an increase of 10.2% from ₹27.73 lakh crore a year ago. The average advances under management for the March 2026 quarter were ₹29.64 lakh crore, growing by approximately 10% over the same period last year. This consistent growth across different advance metrics underscores a healthy demand for credit and the bank's ability to capitalize on it.

Strong Deposit Mobilisation

On the liabilities side, HDFC Bank continued its impressive performance in garnering deposits. The bank's total deposits at the end of the period reached approximately ₹31.06 lakh crore as of March 31, 2026. This represents a substantial YoY increase of 14.4% from ₹27.15 lakh crore a year earlier. The growth in deposits outpaced the growth in advances, a key metric for maintaining a healthy credit-deposit ratio.

The average deposits for the quarter stood at ₹28.51 lakh crore, registering a growth of 12.8% compared to the ₹25.28 lakh crore in the year-ago period. This steady inflow of funds is crucial for supporting the bank's lending activities and managing its liquidity position effectively.

Breakdown of the Deposit Base

A closer look at the deposit composition reveals healthy growth in both low-cost and term deposits. Period-end Current Account and Savings Account (CASA) deposits grew by 12.3% YoY to reach ₹10.61 lakh crore. Meanwhile, period-end time deposits saw even stronger growth, rising by 15.5% YoY to ₹20.45 lakh crore. The sustained growth in the CASA base is particularly important as it helps the bank maintain a lower cost of funds.

Average CASA deposits for the quarter stood at ₹9.18 lakh crore, up 10.8% YoY, while average time deposits grew 13.7% to ₹19.33 lakh crore. This balanced growth across deposit categories highlights the bank's strong franchise and customer trust.

Key Performance Metrics: Q4 FY26 vs Q4 FY25

Leadership and Governance in Focus

The bank's strong operational update comes at a time when its leadership has been under investor scrutiny. Last month, Atanu Chakraborty, the bank's part-time Chairman and an independent director, resigned from his position. He cited that certain practices within the bank over the past two years did not align with his personal values. Such developments keep the focus on the bank's corporate governance standards, an area that will be closely watched by investors and regulators alike.

Market Outlook

This provisional data sets a positive tone for HDFC Bank's upcoming quarterly earnings. Analysts and investors will now await the detailed financial report for insights into profitability, net interest margin (NIM), asset quality, and operating expenses. The acceleration in loan growth compared to the previous year will be a key point of analysis, especially in the context of the bank's strategy post its merger with HDFC Ltd. The bank's ability to maintain strong deposit growth while expanding its loan book will be critical for its performance in the coming quarters.

Conclusion

HDFC Bank's Q4 FY26 business update showcases a robust performance characterized by strong, double-digit growth in both its loan book and deposit base. The figures suggest a successful quarter, with the bank effectively navigating the market to expand its operations. The full picture of the bank's financial health will become clear when it releases its audited Q4 and full-year results on April 18, 2026.