For HDFC Bank, growth was soft in the June quarter with total credit growing by 21.5% year-on-year (YoY) and 1.9% sequentially, down from a 9% credit growth seen in the March quarter. Retail loans grew 21.5% YoY and 5% sequentially, commercial and rural loans grew 3% QoQ, while wholesale loans were flat QoQ. Deposits grew 19.3% over the June quarter last year and 2.9% over the March quarter.
“While Q1 is generally weak for the lending space, HDFC Bank QoQ growth was a tad softer leading to lower loan to deposit ratio which could be a drag on the net interest margins,” said Gaurav Jani – research analyst at Prabhudas Lilladher. “However, retail share improved QoQ from 38.5% to 40%, which also suggests that in the March quarter some part of current quarter growth was up-fronted which would have been lower yielding.”
Private lender IndusInd Bank reported steady momentum in business growth with loan growth gradually improving over the last five quarters. As per the June quarter operational performance released by the lender, loans grew 18.4% over the June quarter last year and 4.4% sequentially, which is the highest in the last 10 quarters. Its total deposits grew 13.3% YoY and QoQ led by a strong CASA growth.
Federal Bank also reported its numbers for the quarter ended June 30, with total loans growing by 16.3% YoY and 4.6% on a quarterly basis. Retail loans grew 16.7% YoY and wholesale book grew 15.8% YoY. Deposits also improved and grew by 8.2% on a yearly basis.
Loan and deposit growth both accelerated for private lender IDFC First Bank, with gross advances growing at a strong pace of 21% YoY and 6.7% sequentially, on strong traction from retail and commercial loans. Retail loan growth was primarily led by home loans which grew by 31.9% over the June quarter last year. The exposure to the infrastructure sector continued to decline further by 35% YoY.
Customer deposits grew at a strong pace of 20.6% YoY while the CASA ratio improved to 50.3%, with growth of 11% YoY and 22.3% QoQ.
