Private banks show healthy loan, deposit growth in Q2, Casa share dips QoQ

Loans continued to grow at a healthy pace for private sector banks in the July-September quarter of the current financial year while deposit growth also picked up pace, business figures released by a few lenders showed.

HDFC Bank, the largest private sector lending of the country, reported a year-on-year growth of 23.5 per cent in advances to Rs 14.8 trillion as of September 30. On a sequential basis, advances were up 6.1 per cent.

The growth in loans was driven by 31.5 YoY (9.5 per cent QoQ) growth in commercial and rural banking segments, followed by 27 per cenr YoY growth in wholesale loans (9 per cent QoQ), and 21.5 per cent YoY growth in retail loans (5 per cent QoQ).

The bank’s deposits aggregated to Rs 16.74 trillion as of September 30, 2022, a growth of around 19 per cent YoY as of September 30, 2021 and 4.3 per cent over the previous quarter. Retail deposits grew by 20.5 per cent YoY.

According to Reserve Bank of India data, bank credit grew at 16.2 per cent YoY as on September 9, while deposits were up by 9.5 per cent.

Though HDFC Bank’s current and savings account (Casa) deposits grew by around 15.4 per cent YoY but its share in total deposits fell. The bank’s Casa ratio stood at around 45 per cent as of September 30, 2022, as compared to 46.8 per cent as of September 30, 2021 and 45.8 per cent as of June 30, 2022.

Another private sector lender Yes Bank reported 11.6 per cent year on year growth in advances to Rs 1.93 trillion as on September 30. On a sequential basis, loans grew by 3.5 per cent.

Yes Bank also crossed the Rs two trillion mark in terms of total deposits which grew by 13.2 per cent YoY. The share of Casa in total deposits was 31.3 per cent as compared to 30.3 per cent a year ago and 31.6 per cent at the end of June quarter.

Indusind Bank reported 11.6 per cent YoY growth in loans to Rs 2.6 trillion while deposits grew by 15 per cent YoY to Rs 3.16 lakh crore, as on Sep 30 2022. Indusind also saw its share of Casa deposits falling sequentially to 42.4 per cent as compared to 43.2 per cent as on June end. The ratio was 42.1 per cent on Sep 30, 2021.

With interest rates on fixed deposits on the rise, depositors are shifting their deposits to term deposits which resulted in a fall in the share of Casa deposits in total deposits.

Old generation private lender Dhanlaxmi Bank reported 30.74 per cent YoY growth in advances to Rs 9114 crore, aided by 19.3 per cent growth in gold loans. The deposits grew by 6.85 per cent to Rs 12,734 crore.

Mahindra & Mahindra Financial share price jumped 11.6 per cent after the shadow bank reported 110 per cent YoY growth in loan disbursals in September. For the quarter disbursal grew by 82 per cent YoY.

“Healthy disbursement trends during the first half have led to a strong gross asset book of approximately Rs 73,900 crore, growing 3 per cent month-on-month. This has also resulted in yoY growth of 16 per cent vs September last year and 14 per cent vs March 2022,” the company said.

The collection efficiency (CE) was at 98 per cent for September 2022, against CE of 96 per cent for August 2022. The first half is estimated to clock a disbursement of approximately Rs 21,300 crore, it said.