Mumbai: HDFC Bank Ltd. reported strong business growth for the first quarter ended June 30, 2026, with double-digit increases in deposits, advances and assets under management (AUM), reflecting sustained momentum in its core banking operations.

According to the bank’s latest quarterly business update, total deposits rose 14.6 per cent year-on-year to Rs 31.70 lakh crore as of June 30, 2026. The growth was primarily driven by a significant increase in time deposits, highlighting continued customer confidence and higher fixed deposit mobilisation.

Time deposits drive overall deposit growth

HDFC Bank’s time deposits increased 17.4 per cent year-on-year to Rs 21.45 lakh crore at the end of the June quarter. The sharp rise indicates that customers continued to prefer fixed deposits amid prevailing interest rate conditions.

Time deposits remained the key contributor to the bank’s overall deposit growth during the quarter, helping strengthen its funding base.

Meanwhile, Current Account and Savings Account (CASA) deposits grew at a relatively slower pace of 9.4 per cent year-on-year to Rs 10.25 lakh crore. CASA deposits are considered a low-cost source of funds for banks and remain an important indicator of deposit quality.

Despite the comparatively moderate CASA growth, the bank maintained a healthy expansion in its overall deposit base.

Advances register healthy double-digit growth

On the lending front, HDFC Bank continued its steady credit expansion during the first quarter of the financial year.

The bank’s gross advances increased 15.4 per cent year-on-year to Rs 30.61 lakh crore as of June 30, 2026. The growth reflects sustained demand across retail, commercial and corporate lending segments, although the bank did not provide a segment-wise breakup in its business update.

The increase in advances was broadly in line with the growth in deposits, indicating balanced expansion in both lending and funding activities.

Assets under management also rise

HDFC Bank’s assets under management (AUM) stood at Rs 31.27 lakh crore, registering a 12.4 per cent year-on-year increase during the quarter.

The rise in AUM reflects continued growth across the bank’s lending and wealth-related businesses. AUM is an important measure of the overall scale of a financial institution’s managed assets and lending portfolio.

The latest business update highlights the bank’s ability to maintain growth across multiple financial parameters despite evolving market conditions.

Focus remains on balanced business expansion

The June quarter performance indicates that HDFC Bank continued to strengthen its balance sheet through consistent deposit mobilisation while maintaining healthy credit growth.

Higher time deposit growth provided support to the bank’s funding profile, while double-digit expansion in advances and AUM demonstrated continued business momentum.

The business update offers an early indication of the bank’s operational performance ahead of its detailed financial results for the first quarter of the 2026–27 financial year, which will provide additional insights into profitability, asset quality and earnings.

Conclusion

HDFC Bank’s Q1 business update reflects steady growth across key operating metrics, with deposits rising to Rs 31.70 lakh crore, advances reaching Rs 30.61 lakh crore, and assets under management climbing to Rs 31.27 lakh crore. Strong growth in time deposits remained the key driver of the bank’s overall performance during the quarter.