How has been the deposit and loan growth numbers of some of the Indian banks that announced data for Dec-21 quarter like HDFC Bank, Yes Bank, BOM etc?
Answer
Answer
In the first few days of January, a number of large and small banks announced their deposit and loan growth numbers for the December quarter. It does look like the quarter has been robust for the banking system overall. A total of 8 banks reported high frequency data on loans and deposits. Overall, banks till date has shown 7.25% growth in loan son a yoy basis, while the growth was 3.26% loan growth over the September 2021 quarter.
Among the leaders in loan growth was Bank of Maharashtra at 23% followed by HDFC Bank at 16.5% yoy growth. The figures of BOM may look amplified as it is on a small base hence HDFC bank numbers should be more credible and significant. Among other banks, Federal Bank, CSB and IDFC First bank bettered the industry average for loan growth. However, KVB, KTK Bank and Yes Bank lagged below the industry average in loan growth.
While HDFC Bank led the private sector banks in loan growth, Yes bank lagged. Let us look at HDFC Bank first. HDFC Bank witnessed 16.5% growth in total advances at Rs.12.60 trillion in the Dec-21 quarter. IT also reported 5% growth over the Sep-21 quarter. HDFC Bank reported 13.8% growth in deposits at Rs.14.46 trillion with CASA deposits accounting for a whopping 47% of total deposit base; among the best in the banking industry.
Where did Yes Bank really lag the pack? Yes Bank loan growth was the lowest among early reportages at just about 3.9% at Rs.1.76 trillion in the Dec-21 quarter. Growth was a subdued 2.15% over the Sep-21 levels. While deposits grew by 4.3% at Rs.1.84 trillion in the quarter, CASA deposits accounted for just about 31% of the total deposit base. That is because Yes Bank has traditionally focused on corporate deposit base.
It must be remembered that all these are provisional numbers and are only indicative. These must not be seen as a proxy for the actual results announcement.