On April 5, HDFC Bank’s shares rose about 2% as the lender stated robust business growth, with advances and deposits growing rapidly.

Advances surged 17% on-year in the March quarter, whereas deposits increased 21%. The bank’s advances totalled around Rs 16 lakh crore as of March 31, 2023, and deposits mounted at Rs 18.83 lakh crore.

Motilal Oswal Financial Services wrote that deposit growth rose sharply after a softer Q3FY23. The bank saved Rs 1.5 trillion in deposits during the quarter, considerably more than the bank raised in the previous two quarters.

At 9:24 am, HDFC Bank’s shares traded at Rs 1634.3, up 1.5% on the Bombay Stock Exchange. The brokerage firm said the retail and commercial loans endure to drive loan growth while corporate loans witnessed a healthy trend.

The lender’s domestic retail loans grew by around 21% YoY and around 5% QoQ, commercial and rural banking loans rose about 30% YoY and 9.5% QoQ, while corporate and other wholesale loans rose 12.5% YoY and 4.5% QoQ.

The brokerage firm said they expect margins to endure stable and the sustained momentum in Retail and Commercial Banking will be supportive of fee income after the bank maintained a ‘buy’ rating on the banking company’s stock has a target price of Rs 1,610.