HDFC Bank Ltd., India's largest private sector bank by value, reported its best loan growth in 14 quarters, or over three years.

Based on its September quarter business update, advanced increased 23.5 percent year-on-year to Rs 14.8 lakh crore. On a sequential basis, the growth was 6.1 percent. Including inter-bank participation certificates and rediscounted bills, advances grew 25.8 percent from last year.

Deposits for the September quarter increased 19 percent last year to Rs 16.73 lakh crore.

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Growth in HDFC Bank's loans was led by commercial and rural banking loans which increased 31.5 percent over the previous year. Both domestic retail loans and corporate & wholesale loans saw growth in excess of 20 percent over last year.

CASA or Current Account Savings Account, or the total amount of bank deposits that are in current account and savings accounts, increased in double-digits from last year while the CASA ratio declined on a year-on-year as well as on a sequential basis.

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Based on CNBC-TV18's calculations, the bank's market share in the loans segment increased to 11.79 percent in the September quarter from 10.94 percent last year and 11.27 percent in the June quarter.

The lender also purchased loans worth Rs 9,145 crore under the home loan agreement with HDFC.

Brokerage firm Morgan Stanley in a note last month, wrote that Indian banks are set to enter another round of re-rating as catalysts for the same are falling into place.

Shares of HDFC Bank are trading 2.1 percent higher at Rs 1,443 and are among the top contributors to the NSE Nifty 50 index's upside.

First Published:Oct 4, 2022 12:06 PM IST