InvestorQ : How has been the deposit growth of the private sector banks like ICICI Bank, HDFC Bank and Axis Bank in the recent past?
Deepa Salunkhe made post

How has been the deposit growth of the private sector banks like ICICI Bank, HDFC Bank and Axis Bank in the recent past?

Answer
image
Arya Nanda answered.
2 months ago
Follow

Deposit growth is happening in private banks but it is clearly gravitating towards the larger established private banking names. A wider network, better capital position and stronger market perception are giving a handful of banks the edge. And these include private banks like HDFC bank, ICICI Bank and Axis bank among others.

The recent failure of smaller banks, the stress at NBFCs and the sharper regulatory interventions have led to greater faith in bigger banks. People would rather go with the established leaders in the business. Deposits at HDFC Bank and ICICI Bank were 20% higher from a year ago as at the end of the second quarter of the current fiscal ending Sep-20.

For example, HDFC Bank saw a growth of Rs.2.07 trillion in its deposit base, while ICICI Bank’s deposits rose by Rs.1.36 trillion on a yoy basis. Other banks like Axis and Kotak also saw their deposits rise but to a lesser extent. The TBTF; too big to fail, tag for ICICI Bank and HDFC Bank have been a great help.

However, smaller private banks like South Indian Bank, Karur Vysya Bank and erstwhile Lakshmi Vilas Bank saw a fall in total deposits.

0 Views