HDFC Bank Posts Double-Digit Growth in Advances and Deposits, Taps RBI FCNR(B) Window

Provisional quarterly metrics

HDFC Bank released provisional business updates for the quarter ending September 30, 2026, showing broad-based expansion on both sides of the balance sheet. Period-end gross advances grew 15.3% year-on-year, while period-end deposits climbed 18.8% year-on-year. Average advances under management rose 14% to ₹31.87 trillion and average deposits grew 16.8% to ₹31.66 trillion, indicating sustained credit demand and franchise momentum.

Loan book composition

Average time deposits surged 19.7% to ₹21.95 trillion, outpacing growth in Current Account Savings Account (CASA) deposits, which rose 10.7% to ₹9.71 trillion. Period-end deposits reached ₹33.28 trillion, supported by a 22.8% rise in time deposits. The faster expansion of time deposits relative to CASA balances signals a shift in the funding mix toward higher-cost liabilities.

FCNR(B) swap facility usage

The bank tapped the Reserve Bank of India's FCNR(B) swap window introduced in June 2026, mobilizing about USD 11.5 billion in foreign currency deposits. Against this, HDFC Bank extended USD 5.7 billion in overseas loans, issued standby letters of credit totaling USD 3.1 billion, and placed USD 2.5 billion in senior unsecured USD bonds between June and August 2026. The exercise diversifies the funding base and reinforces liquidity.

Margins and upcoming review

The shift toward time deposits typically raises the cost of funds, with potential implications for net interest margins in the full quarterly results. The provisional figures remain subject to limited review by statutory auditors. Investors are awaiting the formal earnings release, which is expected to disclose net interest margin guidance and the profitability impact of the changing deposit mix.