HDFC Bank: loan growth back at 15.3%, CD ratio still tight

HDFC Bank Limited (NSE: HDFCBANK) grew its loan book 15.3% YoY to ₹33.07 lakh crore in Q2 FY27, its fastest September quarter growth since the merger. Deposits grew 18.8% to ₹33.27 lakh crore. The stock closed at ₹705, near its 52-week low of ₹682. What happened Loan growth accelerated from 7.1% in September 2024 to 10% in September 2025 and now 15.3%. The bank raised $11.5 billion through FCNR(B) deposits via an RBI special window, of which $5.7 billion was lent via overseas branches. Time deposits grew 22.8% to ₹22.75 lakh crore. The CD ratio is 99.4%. Why it matters The July 2023 merger inflated the CD ratio to 104.4%, forcing two years of cautious growth. At 99.4% now, it is still above the 75% to 80% industry norm and SBI's 76.6%. The return to 15% loan growth shows the deleveraging is working, but the balance sheet is not yet loose. My view Read the FCNR(B) contribution carefully. The bank raised ₹1.10 lakh crore in overseas deposits to fund loans. Without that, organic growth is slower. Small and mid-market enterprise loans drove Q1 FY27 at 18.7% YoY, likely continuing. The new MD Anup Bagchi takes charge on 27 October 2026. His first quarters will define whether 15% loan growth is structural or FCNR-aided. At 1.9 times book, HDFC Bank is at the lower end of its five-year range and well below Kotak Mahindra Bank at 3.1 times. Return on equity is 14%. What I am watching Q2 FY27 results, NIM trend, and loan growth holding above 14% without the FCNR. On the chart, ₹682 is the 52-week low and ₹780 is resistance. My stance: Buy near ₹700. The re-rating case depends on the CD ratio normalising and Bagchi delivering sustained growth. Disclosure: I do not hold a position in HDFC Bank Limited at the time of writing. This is not investment advice.