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Why HDFC Bank shares fell despite first double-digit loan growth post mergerGross advances increased 11.9% YoY to ₹28.44 lakh crore, while period-end deposits grew 11.5% YoY to ₹28.59 lakh crore. Deposit growth remained broadly in line with advances growth.By Meghna Sen  January 5, 2026, 1:04:25 PM IST (Updated)2 Min ReadShares of HDFC Bank Ltd. are trading 2% lower on Monday, January 5, despite reporting healthy growth in the third quarter. In its Q3 business update, the lender signalled a return to double-digit loan growth for the first time since the merger on a normalised base.

The bank reported loan book growth of nearly 12% year-on-year for the December quarter. Average advances under management rose 9% YoY to ₹28.63 lakh crore during the quarter.

Gross advances increased 11.9% YoY to ₹28.44 lakh crore, while period-end deposits grew 11.5% YoY to ₹28.59 lakh crore. Deposit growth remained broadly in line with advances growth.

HDFC

Q3FY25

Q2FY26

Q3FY26

QoQ

YoY

Gross Advances

          25,42,600

     27,69,200

         28,44,500

2.7%

11.9%

Adv under mgmt

          26,83,900

     28,68,800

         29,46,000

2.7%

9.8%

Total Deposits

          25,63,800

     28,01,800

         28,59,500

2.1%

11.5%

Time deposits

          16,35,200

     18,33,500

         18,53,900

1.1%

13.4%

Within deposits, period-end CASA deposits rose 10.1% YoY to around ₹9.61 lakh crore.

At a broader level, system-wide credit growth stood at around 12% as of December 15, 2025.

What is the argument from investors and analysts?

The key concern centres around the loan-to-deposit ratio. With the latest numbers, HDFC Bank's LDR has risen by 50 basis points this quarter to 99%.

Management has indicated that it intends to bring the ratio down to below 90% in the near term.

However, a higher LDR raises concerns on two fronts. First, deposit growth becomes a key constraint on loan growth, especially as HDFC Bank now has one of the highest LDRs among peers following the merger.

Second, investors are questioning the bank's ability to deliver on its FY27 growth guidance.

Management has earlier indicated that growth in FY27 would be higher than the industry, but a stretched LDR could make that target more challenging.

HDFC Bank shares closed 0.92% higher on Friday at ₹1,000.25. The stock has risen 17% in the last one year.Continue ReadingFirst Published: Jan 5, 2026 8:51 AM ISTTagsHDFC BankHDFC Bank Share PriceHDFC Bank Stock Price