Banks post higher Q2 deposit growth print than credit growth, reversing two year trend
HDFC bank, Yes bank, CSB Bank and Karur Vysya Bank reported higher deposit growth print than credit growth, in a reversal of the sectoral trend of credit growth outpacing deposit growth over the past two years.
India’s largest private sector lender HDFC Bank grew deposits by 15.1% year-on-year at the end of the September quarter taking its total deposit base to Rs 25 lakh crore. Sequentially deposits grew by 5% as it added Rs 1.2 lakh crore worth of deposits in one quarter alone.
«Deposit growth is the metric that matters the most for HDFC Bank and it looks healthy, and going by the other banks’ headline metrics that have come in, there is a clear improvement in the liquidity environment,» said Pranav Gundlapalle, head, India financials at Bernstein.
HDFC Bank's total advances grew 7% year-on-year to Rs 25.19 lakh crore. Assets under management which includes inter-bank participation certificates, bills re-discounted and securitisation grew by 8% for the second quarter of 2024 to Rs 26.33 lakh crore. The bank said it had securitised loans worth Rs 19,200 crore in the September quarter.
«We continue to expect margins to improve in the coming quarters as the incremental deposits replace the high-cost borrowings of erstwhile HDFC Ltd,» said Suresh Ganapathy, head of financial services research at Macquarie Capital. " Key risks include inability to improve margins and return on assets from current levels."
Marketing
Modern Marketing Masterclass by Seth Godin
By — Seth Godin, Best-selling author
Artificial
