HDFC Bank: HDFC Bank moves ahead of rivals in garnering deposits


Mumbai: HDFC Bank pulled ahead of rivals in garnering deposits even while maintaining sufficient competitiveness in loan-book expansion in the December quarter, provisional data published by India’s most valuable lender ahead of quarterly earnings showed.
also said its assets climbed more than a fourth in the quarter that saw a record increase in its customer base. HDFC Bank’s deposits rose 20% over last year to ₹17.33 lakh crore. Retail deposits climbed 22%, while wholesale deposits expanded 12%.

“HDFC Bank is now making its mark and stamping its authority by gaining a lion’s share of the deposits market,” said Suresh Ganapathy, associate director, Macquarie Capital.

“This is in complete contrast to what the overall banking system is reporting with a big gap between deposit growth at ~9% and loan growth at 17% YoY. As per our calculations and estimates, HDFC Bank’s incremental deposit market share could be closer to 25%, compared with an outstanding market share of 10%, which is quite commendable.”

The lender, however, reported lower-than-expected credit growth, with loans expanding a fifth to 15.07 lakh crore. After including the inter-bank participation certificates and bills discounted, the bank’s loans climbed 24% over last year. The banking industry’s loans expanded 17.4% in December.

Slower credit growth was mainly due to a sequential de-growth of 1% in the corporate boom while the retail portfolio continued its strong growth momentum.

“We believe slippages could remain elevated in Q3 due to seasonal stress in the Agri portfolio (including KCC) which, coupled with slower credit growth, could keep NPA ratios largely flat,” said Anand Dama, banking analyst, Emkay Global. “We believe that slower credit growth coupled with lower fees and elevated opex in the run-up to the merger could keep core-profitability growth in check.”
Bajaj Finance, meanwhile, said it had booked its highest ever new loans in the December quarter at 7.8 million, versus 7.4 million a year ago. It had recorded its highest-ever quarterly increase in customer franchise at 3.1 million, taking its total customers to 66 million versus 55.4 million in the same period last year.

Its Assets under management (AUM) climbed 27% to approximately 2.3 lakh crore, while the deposit book stood at 43,000 crore, a YoY growth of 41%.

Yes Bank, too, reported proforma numbers with a loan growth of 12% over last year, taking its advances book to 1.97 lakh crore. The bank said it added 5,171 crore to the advances book representing the net carrying value of the loan portfolio sold to JC Flowers Asset Reconstruction Company.

The bank also reported a provisional deposit growth of 15.9% taking its book to 2.13 lakh crore at the end of December 2022.

AU Small Finance Bank posted advances growth of 20% at the end of December quarter taking its loan book to 56,335 crore. Its deposit book grew by 16% totalling 61,101 crore.



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