BANK GROWTH

HDFC Bank mulling loan portfolio sale amid growth scrutiny

HDFC Bank is considering selling part of its loan portfolio amid regulatory scrutiny on India's surging credit growth. This move, aimed at lowering its elevated credit-deposit ratio post its merger with HDFC Ltd., is the bank's first since combining the two entities. The bank's loan growth has outpaced deposits significantly, raising liquidity concerns.

MSMEs have growth opportunities, the challenge is in easing their access to credit: Manish Kothari, Kotak Mahindra Bank

The key pivot for Kotak Mahindra Bank’s MSME lending business has come through holistic banking relationships and out-of-the-box solutions, says Manish Kothari, Head, Commercial Banking, Kotak Mahindra Bank.

HDFC Bank gross advances jump 52.6% on-year in Q1 to Rs 24.8 lakh crore

HDFC Bank's gross advances increased by 52.6% year-on-year to ₹24.87 lakh crore in the quarter ending June 30, driven by its merger with HDFC Limited last July. Excluding the merger impact, advances grew by 14.9% from June 30, 2023, reaching ₹25.08 lakh crore by March 31, 2024.

Bandhan Bank shows strong growth in deposits and Advances for June

Bandhan Bank reported significant growth with loans & advances reaching Rs 1,25,619 crore in June 2024, a 21.8 per cent year-on-year increase from June 2023's Rs 1,03,169 crore. Total deposits grew 22.8 per cent to Rs 1,33,203 crore, up from Rs 1,08,480 crore in June 2023. CASA deposits climbed by 13.8 per cent to Rs 44,453 crore while bulk deposits increased 31.6 per cent to Rs 41,099 crore. The retail to total deposits ratio fell from 71.2 per cent in June 2023 to 69.1 per cent in June 2024, and the CASA Ratio decreased from 36.0 per cent to 33.4 per cent.

Equitas Small Finance Bank clocks 35% deposits growth, bucks sectoral trend

Equitas Small Finance Bank, with a priority sector focus, achieved a 35.4% year-on-year deposit growth to Rs 37524 crore by the end of June, surpassing the sectoral average of 12%. Advances increased 17.8% to Rs 34872 crore, although the CASA ratio fell to 31% due to faster term deposits growth. Provisional figures submitted to stock exchanges confirmed these results.

Bandhan Bank shows strong growth in deposits and Advances for June

Leading private bank Bandhan Bank has reported impressive year-on-year growth in loans & advances, reaching Rs 1,25,619 crore in June 2024, marking a 21.8 per cent surge from the previous year's figure of Rs 1,03,169 crore.

Bank of Maharashtra, Uco report low deposit growth, while advances rose much faster

A day after the Reserve Bank of India (RBI) urged banks to bridge the gap between deposit and credit growth, two public sector banks, Bank of Maharashtra and Uco Bank, reported subdued deposit mobilisation. Both banks reported sub-10% deposit growth, while advances grew at high teen percentages year-on-year at the end of the first quarter, June 30.

Bank of Maharashtra logs 19% loan growth in April-June

Bank of Maharashtra reported a 19% growth in credit to Rs 2.09 lakh crore for the April-June quarter, with outstanding credit at Rs 1.75 lakh crore. Total deposits increased by 9.44% to Rs 2.67 lakh crore, with Current Accounts and Savings Accounts declining to 49.86%. Credit Deposit ratio increased to 78.18%.

Federal Bank leads in credit expansion among Kerala-based lenders

Federal Bank led in gross loan expansion with a 20% year-on-year increase to Rs 2.24 lakh crore by June's end. Meanwhile, CSB Bank recorded the highest deposit growth among Kerala-based lenders, marking a 22.4% rise to Rs 29,920 crore. Other banks like South Indian Bank also saw notable loan portfolio growth, with CSB Bank reporting a 17.8% increase to Rs 25,099 crore and South Indian Bank reaching Rs 82,510 crore, up 11.4%.

RBI tells banks to find ways to bridge the gap between credit and deposit growth

The meeting addressed various banking challenges including credit-deposit ratio, cybersecurity, and digital frauds. Governor Das emphasized the need for robust cybersecurity controls and customer awareness initiatives to curb digital frauds.

YES Bank Q1 Update: Advances rise 15% YoY to Rs 2.29 lakh cr, deposits grow 21%

The bank's credit-to-deposit ratio for the first quarter was 86.4%, down from 91.3% in the same quarter last year. During the April-June 2024 period, the liquidity coverage ratio improved to 137.8%.

Puravankara aims to secure 20 million square feet of land by the end of the fiscal year

Puravankara's strategic plans include reducing net debt, optimizing debt costs, and utilizing its extensive land bank for future expansion and growth, as announced by the Group CEO. The company is focused on enhancing revenue from key markets like Bangalore and exploring new funding sources through AIFs, aligning with its goal of sustained growth and development.

Cannot avoid market momentum but be a little more selective: Mayuresh Joshi

The entire ecosystem will see accelerated investments and the government push through regarding the capex needs. Also, railways as a theme, defence as a theme, and shipbuilders as a theme will continue. Execution is going to be extremely important out here, says Mayuresh Joshi. He further says the earnings story and earnings growth should continue to remain strong in select domestic-focused sectors

Indian economy poised for potentially stable high growth phase, says RBI's monetary policy panel member

RBI's monetary policy committee member Shashanka Bhide highlighted India's potential for stable high growth amidst significant risks, citing strong domestic demand, investment spending, and positive monsoon forecasts. He emphasised the importance of maintaining inflation aligned with targets to support growth, with the RBI projecting retail inflation at 4.5% for FY25. The MPC recently kept the repo rate unchanged at 6.5%, focusing on sustaining economic momentum.

India Ratings pegs bank credit growth at 15.4% for FY25

India Ratings has forecasted a 15.4% loan growth for banks in FY25. The rating agency believes a turnaround in private capital expenditure could alleviate any pressure on overall credit growth during the fiscal year.

Retail loans moderate for the 10th straight month

The Reserve Bank of India reported that bank lending to the retail sector moderated for the tenth consecutive month in May, reaching 17.8% from 19.1% a year ago. Corporate loans grew faster at 8.9% compared to 6% in May 2023. Non-food bank credit saw a 16.2% growth in May 2024 compared to 15.5% a year ago.

India's GDP growth to slow modestly this fiscal year and next: Reuters poll

RBI expresses concern over credit growth, says expansion of above 18% may create risk

Retail lending growth slows in Q4 FY24, while bank lending to NBFCs moderates. The share of bank lending to NBFCs decreases, indicating a shift towards balanced credit practices for financial stability.

India central bank policymakers divided over rate-growth debate

Internal members maintain hawkish stance on inflation, with Governor Das cautioning against hasty actions for fear of worsening the situation

Rajesh Kothari on top three themes to bet on for solid returns

​Next three years that gap is not going to be big. In fact, the private sector banks actually can do better than public sector banks in terms of the overall earnings growth because the bulk of that benefit of credit cost is already behind us.

World Bank revises India's FY25 growth forecast to 6.6%

The World Bank revised India's FY25 growth forecast to 6.6% from 6.4%, expecting India to remain the fastest growing economy, driven by public and private investment, and rising consumption.

Fino Payments Bank eyes tripling digital banking revenue share by FY25

Fino Payments Bank sees an opportunity in the digital banking space after Paytm Payments Bank's exit. To capitalise on this, they're ramping up their digital offerings, aiming to grow their digital revenue share from 5-6% in FY24 to 15% this fiscal year. Since December, Fino has deployed around 14,000 QR codes which reported 300,000 transactions valued at Rs 33 crore.

Banks's CD ratio dips 50 bps since March

The Credit to Deposit (CD) ratio of commercial banks fell by 50 basis points since March, signaling a potential slowdown in credit growth due to slower deposit growth. As the RBI maintains current rates, deposit rates are unlikely to rise, possibly pressuring loan growth despite expected capex spending boosts. The CD ratio, considering the HDFC merger, dropped from 80.27% in late March to 79.79% by May 17.