HDFC Bank Shares Fall Despite Strong Q3; High LDR Raises Growth Concerns

• HDFC Bank shares declined for the second consecutive day, despite reporting strong Q3 updates.
• The bank's loan book grew 12% and deposits 11.5%, marking the first double-digit growth post-merger on a normalized base.
• Analysts attribute the share drop to a high Loan-Deposit Ratio (LDR) of nearly 99%, exceeding management's guidance of below 90%.
• A high LDR makes deposit growth a constraint and raises concerns about the bank's future growth trajectory.
• Despite the fall, 46 out of 48 analysts maintain a "buy" rating on HDFC Bank.

Why It Matters: HDFC Bank's high LDR, not Q3 results, is driving share decline and future growth concerns.