HDFC Bank advances Q2 FY27: Deposits Grow Faster as India’s Largest Private Lender Reports Strong September-Quarter Business
HDFC Bank advances Q2 FY27 Bank reported a strong expansion in its lending business during the quarter ended September 30, 2026. According to the bank’s provisional business update, gross advances increased 16.3% year-on-year to approximately ₹32.20 lakh crore, compared with ₹27.69 lakh crore in the corresponding period last year. The latest figures indicate that credit demand remained healthy across the bank’s broad customer base, even as the lender continued to focus on mobilising deposits and maintaining liquidity.
HDFC Bank advances Q2 FY27 The bank’s total deposits grew at an even faster pace, rising 18.8% year-on-year to nearly ₹33.28 lakh crore from ₹28.02 lakh crore a year earlier. The stronger growth in deposits compared with advances is significant because it gives the lender a larger funding base to support future loan expansion. The provisional figures were released ahead of the bank’s detailed quarterly financial results.ndtvprofit+1
Gross Advances Record Double-Digit Growth
HDFC Bank advances Q2 FY27 gross advances stood at approximately ₹32,19,500 crore as of September 30, 2026. This represented a 16.3% increase from ₹27,69,200 crore recorded at the end of September 2025.
Advances are a key indicator of a bank’s lending activity. They include loans provided to individuals, businesses, companies and other borrowers. Growth in advances generally reflects demand for housing loans, vehicle finance, personal loans, working-capital facilities, corporate credit and other forms of borrowing.
The latest performance shows that HDFC Bank continued to expand its loan book at a healthy pace. On a sequential basis, gross advances also rose around 5.2% from the previous quarter, according to market reports. This suggests that lending momentum remained positive during the September quarter rather than being driven only by the comparison with the previous year.HDFC Bank advances Q2 FY27
The lender’s advances under management, which provide another measure of the bank’s overall credit exposure, stood at approximately ₹33,07,500 crore at the end of September. This figure was up 15.3% from the year-ago period. The difference between gross advances and advances under management reflects the way certain loan portfolios and business categories are measured by the bank.
Deposits Outpace Loan Growth
HDFC Bank advances Q2 FY27 While advances expanded strongly, deposits grew even faster. HDFC Bank’s period-end deposits rose 18.8% year-on-year to ₹33,27,500 crore. In comparison, deposits stood at ₹28,01,800 crore at the end of September 2025.
Deposit growth is important for banks because deposits are the primary source of funds used for lending. A bank that attracts deposits at a steady pace is generally better positioned to support credit growth without relying excessively on wholesale funding or other expensive sources of finance.HDFC Bank advances Q2 FY27
The rise in deposits also indicates that customers continued to place their savings with HDFC Bank. Higher deposits may have been supported by the bank’s large branch network, digital banking services, customer base and competitive deposit products.
HDFC Bank advances Q2 FY27 However, the composition of deposit growth remains important. Average current account and savings account, or CASA, deposits generally provide banks with a relatively lower-cost source of funding. Time deposits, such as fixed deposits, can offer stability but may carry higher interest costs.
Time Deposits Show Strong Momentum
HDFC Bank advances Q2 FY27 time deposits increased sharply during the quarter. Period-end time deposits were reported at approximately ₹22,75,500 crore, representing growth of around 22.8% over ₹18,52,600 crore in the same period last year.
The strong increase suggests that customers showed greater interest in fixed-term savings products. In an uncertain interest-rate environment, many depositors prefer time deposits because they provide predictable returns for a fixed period.HDFC Bank advances Q2 FY27
For HDFC Bank, stronger time-deposit mobilisation can support balance-sheet growth by creating a stable funding pool. At the same time, the bank must carefully manage the cost of these deposits. If deposit rates rise significantly, the cost of funds can increase and place pressure on the difference between lending income and interest expenses.
Average time deposits during the quarter rose approximately 19.7% year-on-year to ₹21,95,200 crore. This was higher than the growth in average CASA deposits, which increased around 10.7% to ₹9,71,200 crore.HDFC Bank advances Q2 FY27
CASA Growth Remains a Key Focus
HDFC Bank advances Q2 FY27 Average CASA deposits grew 10.7% year-on-year during the September quarter. CASA includes current accounts and savings accounts, which are important for banks because they can provide a comparatively cost-effective funding source.
The reported figures suggest that time deposits were the main driver of overall deposit growth. This trend is not unique to HDFC Bank. Across the Indian banking sector, lenders have been competing actively for deposits as credit growth has remained strong.HDFC Bank advances Q2 FY27
When loans grow faster than deposits for an extended period, banks may face pressure to raise funds from alternative sources. Therefore, HDFC Bank’s 18.8% deposit growth, which exceeded its 16.3% advance growth, provides greater balance-sheet comfort.
The bank will nevertheless need to continue strengthening its CASA franchise. A healthy mix of current and savings deposits can help manage funding costs and protect profitability over the long term.HDFC Bank advances Q2 FY27
Foreign Currency Deposits Add to Mobilisation
HDFC Bank also mobilised foreign-currency deposits under a special Reserve Bank of India facility. Reports said the bank raised approximately $1.115 billion in FCNR(B) deposits through the RBI’s foreign-currency swap arrangement.
FCNR(B), or Foreign Currency Non-Resident Bank deposits, are deposits placed by non-resident Indians in permitted foreign currencies. These deposits allow eligible customers to hold funds in foreign currency while earning interest through an Indian bank.
The mobilisation of such deposits contributed to HDFC Bank’s overall deposit growth during the quarter. It also demonstrated the bank’s ability to use regulatory opportunities and its international customer relationships to strengthen its funding base.
However, foreign-currency deposits involve specific maturity, currency and liquidity considerations. Banks must manage these exposures carefully and ensure that the funds are used in accordance with regulatory requirements.
Average Deposits Also Increase
HDFC Bank advances Q2 FY27 HDFC Bank’s average deposits during the September quarter rose 16.8% year-on-year to approximately ₹31,66,500 crore. The figure was higher than the average deposits of ₹27,10,500 crore recorded during the September 2025 quarter.
Average figures are useful because they provide a broader view of the bank’s business during the quarter. Period-end figures show the position on a particular date, while average figures reduce the impact of temporary movements around the quarter-end.HDFC Bank advances Q2 FY27
The growth in average deposits indicates that the bank’s deposit performance was not limited to a single reporting date. It suggests that the lender maintained a stronger deposit base through much of the quarter.
Similarly, average advances under management stood at around ₹31,87,200 crore, increasing about 14% from ₹27,94,600 crore a year earlier.
What the Numbers Mean for HDFC Bank
The September-quarter data presents a largely positive picture for HDFC Bank. Loan growth of 16.3% indicates that the bank continued to benefit from demand across retail, commercial and corporate segments. At the same time, deposit growth of 18.8% was faster than loan growth, supporting the bank’s liquidity position.HDFC Bank advances Q2 FY27
The difference between deposit and advance growth may also help the bank manage its credit-to-deposit ratio. A more comfortable funding position can give the lender flexibility to expand loans in future quarters, subject to demand and credit-quality conditions.
Investors will closely examine the detailed financial results for additional information on net interest margins, asset quality, provisions, capital adequacy and profitability. Strong business growth is beneficial, but it must be accompanied by disciplined underwriting and controlled credit costs.HDFC Bank advances Q2 FY27
The quality of loans is especially important as banks expand rapidly. HDFC Bank will need to monitor delinquencies in unsecured retail loans, small businesses and other segments that may be more sensitive to economic changes.
Market Reaction and Leadership Change
HDFC Bank’s business update came alongside news of a leadership transition. Anup Bagchi was appointed to succeed Sashidhar Jagdishan as the bank’s managing director and chief executive officer. Jagdishan’s term is scheduled to end on October 26, according to market reports.HDFC Bank advances Q2 FY27
The appointment attracted attention from investors because leadership continuity is important for a large financial institution. HDFC Bank has a significant presence across retail banking, corporate banking, payments, wealth management and digital financial services.
The bank’s shares gained in early trading after the leadership announcement and the release of the quarterly business update, although market movements can change during the day. Investors are likely to assess how the incoming chief executive approaches growth, technology, asset quality and profitability.
For the new leadership, maintaining the bank’s growth momentum while preserving credit quality will be a central priority. The challenge will be to balance expansion with prudent risk management in a competitive banking market.
Outlook for the Coming Quarters
HDFC Bank’s latest figures suggest that it entered the second half of FY27 with strong business momentum. Advances are growing at a double-digit pace, while deposits are increasing even faster. This combination provides a constructive foundation for future expansion.HDFC Bank advances Q2 FY27
The outlook will depend on several factors, including consumer demand, corporate investment, interest rates, inflation, competition for deposits and the broader performance of the Indian economy. If credit demand remains firm, the bank may continue to expand its loan book.
At the same time, deposit mobilisation could become more competitive. Banks may need to offer attractive interest rates and improve customer service to secure stable funding. Rising deposit costs could affect margins if lending rates do not adjust at the same pace.
The bank’s upcoming full financial results will provide greater clarity on whether the strong volume growth is translating into higher earnings. Investors will also look for details on non-performing assets, loan-loss provisions, capital levels and the performance of individual business segments.
Conclusion
HDFC Bank’s gross advances rose 16.3% year-on-year to approximately ₹32.20 lakh crore as of September 30, 2026. Deposits grew even faster, increasing 18.8% to nearly ₹33.28 lakh crore, supported by strong time-deposit mobilisation and foreign-currency deposit inflows.
The figures show that India’s largest private-sector bank continued to expand its lending business while strengthening its funding base. The key focus now will be on sustaining this growth, improving the deposit mix, protecting margins and maintaining asset quality.
With a leadership transition also underway, HDFC Bank enters the next phase with both momentum and important responsibilities. Its ability to convert strong business volumes into profitable and sustainable growth will determine how investors assess its performance in the coming quarters.
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