India's HDFC Bank slips after quarterly update flags loan-deposit ratio pressure

HDFC Bank HDBK.NS drops 2.4% to 977.6 rupees after co's quarterly update

*Stock is the biggest percentage loser on benchmark Nifty 50 index, which is down 0.3%

India's top private lender posted 11.9% y/y in loan growth as of December-end on Monday, while deposits increased 11.5%

*Its loan to deposit ratio (LDR), a metric that assesses whether it has enough deposits to fund loan growth, went up by 50 bps q/q to 98.5%, Suresh Ganapathy analyst at Macquarie said

This in contrast to the bank's target to bring it below 90% by FY27

HDBK has said it expects to grow loans in line with the industry in FY 2026, and faster than the industry in FY 2027

"...They will have to operate at a 95%+ LDR if they have any aspirations of maintaining their loan growth above system," Ganapathy said

*HDBK rose 12.10% in 2025 vs a 10.5% rise in Nifty 50

($1 = 90.2400 Indian rupees)