HDFC Bank Shares Plunge to 3-Month Low on Q3 Update, Deposit Growth Woes

• HDFC Bank shares dropped over 2% to a 3-month low of Rs 956 after its Q3 business update.
• Average advances under management rose 9% YoY to Rs 28.64 lakh crore, with gross advances up 11.9%.
• Average deposits grew 12.2% to Rs 27.52 lakh crore, but Nomura highlighted slower deposit growth constraining lending.
• Nomura noted the credit-deposit (CD) ratio nearing 100% and stressed the need for stronger deposit inflows for future loan growth.
• Motilal Oswal Financial Services maintained a 'Buy' rating, citing healthy advances growth momentum.

Why It Matters: HDFC Bank's stock fell due to Q3 update concerns over slower deposit growth impacting future lending.