HDFC Bank, India's largest private sector lender, on Saturday, 4 July 2025 reported double-digit growth across key metrics for Q1 FY27 (quarter ended 30 June 2025), even as the bank navigates a deepening corporate governance controversy. Total deposits climbed 14.7 per cent year-on-year to ₹31.70 lakh crore, while gross advances rose 15.4 per cent to ₹30.61 lakh crore, according to the bank's exchange filing.

Deposit Growth: Time Deposits Lead the Charge

Within the deposit book, time deposits — fixed and recurring deposits — surged more than 17 per cent year-on-year to ₹21.45 lakh crore, reflecting continued retail appetite for assured returns in a stable interest-rate environment. Current account and savings account (CASA) deposits, however, grew at a comparatively modest 9 per cent year-on-year to ₹10.25 lakh crore, a gap that analysts are likely to scrutinise given that CASA ratios are a key measure of low-cost funding efficiency.

Advances and Assets Under Management

On the lending side, gross advances reached ₹30.61 lakh crore, up 15.4 per cent from the same quarter a year ago. The bank's total assets under management (AUM) stood at ₹31.27 lakh crore at quarter-end, a rise of 12.4 per cent year-on-year. The headline numbers suggest the bank's core business engine remains robust despite the leadership turbulence of recent months.

Governance Crisis: Chairman Exit and CEO Uncertainty

The quarterly update arrives against the backdrop of significant boardroom upheaval. Earlier this year, Atanu Chakraborty stepped down as part-time chairman, citing concerns over certain business practices that he said were not aligned with his personal values and ethics. His departure in March prompted the appointment of Keki Mistry as interim part-time chairman to ensure continuity.

In June, Chakraborty described the legal review of his resignation as 'caveated and superfluous', saying it focused largely on compliance issues rather than the broader concerns he had raised about the bank's business practices, according to reports. Separately, reports indicate that the bank's Governance, Nomination and Remuneration Committee (NRC) did not consider the reappointment of the bank's chief executive officer (CEO) at a recent meeting, adding another layer of uncertainty to the bank's leadership structure.

Most recently, the bank appointed former Finance Secretary Rajiv Kumar as its new part-time chairman for a period of three years, a move seen as an attempt to restore institutional confidence.

Stock Performance

Shares of HDFC Bank ended 1.77 per cent higher at ₹2,001.50 per share on the National Stock Exchange (NSE) on Friday. Despite the single-session gain, the stock has declined approximately 4 per cent over the past six months, though it has delivered around 22 per cent returns over the past year — suggesting that longer-term investors remain broadly constructive on the franchise.

What to Watch

Full quarterly results, including net interest margins, asset quality, and provisioning data, are expected in the coming weeks and will offer a clearer picture of profitability. The resolution of the CEO reappointment question and the new chairman's first public statements will be closely watched by investors and regulators alike.