HDFC Bank , India's largest private lender, aims to lower its loan-to-deposit ratio (LDR) to pre-merger levels in the next two to three years, its chief financial officer said on Saturday.

HDFC Bank Ltd., India’s largest private lender, second-quarter profit came ahead of analysts’ expectations helped by strong growth in deposits and loans.

Most brokerages assessed by Business Standard expect HDFC Bank's Q2 FY25 net profit to vary +/- 2 per cent over last year's (Q2 FY24) net profit of Rs 15,976.1 crore. Sequentially, it would be nearly flat over profit of Rs 16,174.8 crore seen in the June quarter (Q1) of FY25.

HDFC Bank, India's largest private lender, beat analysts' forecasts for July-September profit on Saturday, helped by higher core lending income, while margins were slightly lower on a sequential basis.

HDFC Bank plans to lower its loan-to-deposit ratio to pre-merger levels within 2-3 years. Post-merger, the ratio spiked to 110%, prompting securitization of 190 billion rupees in loans. LDR is an important metric for banks as it helps assess their liquidity position by gauging whether they have enough deposits to fund loan growth.