- Real estate accounts for 34% of HDFC Bank's advances at over Rs 10 lakh crore
- Total advances stand at Rs 29.37 lakh crore, with real estate as largest sector
- Residential mortgages total Rs 7.39 lakh crore, commercial real estate Rs 2.12 lakh crore
HDFC Bank merged with its parent HDFC Ltd in July 2023. Since then, the mortgage engine has run hard, and the numbers in the bank's FY26 annual report show exactly where that has landed. Real estate now accounts for 34% of the bank's total advances book, at over Rs 10 lakh crore, making it the single largest sectoral concentration on HDFC Bank's balance sheet.
To put that in context, the bank's total advances book stands at Rs 29.37 lakh crore, and one sector accounts for more than a third of it.
Residential mortgages make up the bulk at Rs 7.39 lakh crore, with commercial real estate at Rs 2.12 lakh crore and indirect exposure through the National Housing Bank and housing finance companies adding another Rs 50,843.77 crore. The figure represents exposure, not just outstanding loans.
It does include undrawn credit lines, so the disbursed book is lower than what this number suggests. But the exposure captures the bank's actual risk appetite toward the sector, and at Rs 10 lakh crore, that appetite is quite considerable.
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It Grew Rs 77,000 Crore In One Year
In FY25, total real estate exposure was Rs 9.25 lakh crore. The bank added Rs 77,479 crore in twelve months. Priority sector housing loans within the mortgage book grew 51% year-on-year, from Rs 1.38 lakh crore to Rs 2.08 lakh crore, driven directly by post-merger origination volumes. Commercial real estate added Rs 23,458 crore in the same period, a 12.4% rise in a single year.
The concentration does not show up in the bank's segment reporting. HDFC Bank reports across four business segments, retail, wholesale, treasury, and other banking business. Real estate is not a separate segment. A home loan sits in retail, a construction finance deal sits in wholesale, and a housing finance company credit line sits elsewhere. All three, however, count toward the same Rs 10 lakh crore sector exposure figure.
Financially, the bank's gross NPA stood at 1.15% in FY26, a multi-decadal low, and mortgage credit quality has been stable through the year. Property prices have held up and commercial real estate demand, particularly in the office and warehousing segments, has been steady. Also, the MD and CEO's letter does not flag real estate concentration as a risk either.
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