Lending for the private sector continues to grow, deposits up 13 pc

96
3
Lending for the private sector continues to grow, deposits up 13 pc

In the July-September quarter of the current financial year, lending for the private sector continued to grow at a healthy pace, and deposit growth picked up pace, according to business figures released by a few lenders.

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. Advances were up 6.1 per cent on a sequential basis.

The growth in loans was driven by 31.5 YoY 9.5 per cent QoQ growth in commercial and segmented loans, followed by 27 per cent 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 increased by around 19 per cent YoY as of September 30, 2021 and 4.3 per cent over the previous quarter. Retail deposits increased by 20.5 per cent YoY.

The data shows that grew by 16.2 per cent YoY as on September 9, while deposits increased by 9.5 per cent.

While HDFC Bank's current and savings account Casa deposits grew by around 15.4 per cent YoY, its share in total deposits fell. As of September 30, 2022, the bank's Casa ratio stood at around 45 per cent, compared to 46.8 per cent as of September 30, 2021 and 45.8 per cent as of June 30, 2022.

Loans grew by 3.5 per cent on a sequential basis.

Total deposits rose by 13.2 per cent YoY, as well as the Rs two trillion mark in terms of total deposits. The share of Casa in total deposits was 31.3 per cent compared to 30.3 per cent a year ago and 31.6 per cent at the end of June quarter.

Indusind Bank had 11.6 per cent YoY growth in loans to Rs 2.6 trillion while deposits fell by 15 per cent YoY to Rs 3.16 lakh crore on Sep. Indusind saw its share of Casa deposits fall to 42.4 per cent as compared to 43.2 per cent at the end of June. 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.

Older 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.

The share price of Mahindra Mahindra Financial went up 11.6 per cent after the shadow bank reported 110 per cent YoY growth in loan disbursals in September. The disbursal for the quarter increased by 82 per cent YoY.

In the first half, healthy disbursement trends have resulted in a strong gross asset book of around Rs 73,900 crore, growing 3 per cent month-on-month. The company said that this resulted in yoY growth of 16 per cent compared to September last year and 14 per cent versus March 2022.

The collection efficiency CE was 98 per cent for September 2022, against CE of 96 per cent for August 2022. The first half is estimated to have a disbursement of around 21,300 crore, it said.