Private Banks Might See a Spike in Deposits For March Quarter

Based on the initial numbers reported by three private banks, it has been anticipated that the Indian private lenders may record a spike in deposits for the March quarter. Retail inflation has brought down returns for savers; however, this has not stopped investors from placing their money in the form of bank deposits. HDFC Bank, Federal Bank, and IndusInd Bank have reported their key business performance indicators, including a spike in loans, deposits, and stock exchanges.

Most banks emphasise gathering deposits, especially retail term deposits, current accounts, and savings accounts, to strengthen their liability franchises and bring down their dependence on bulk deposits.

Bank deposits increased by 12% compared to the previous year and stood at ₹149.55 trillion as of 12 March. HDFC Bank has reported that its deposit base has increased to about 13.35 trillion as of 31 March, witnessing a growth of about 16.3% from the previous year. The Federal Bank has reported deposits worth 1.72 trillion as of 31 March, witnessing a 13% increase compared to the previous year. IndusInd Bank has reported robust deposit growth of 27% to Rs 2.56 trillion at the closing of the March quarter.

In the March quarter, all three banks have shown steady growth in both current accounts and savings account (Casa) deposits. HDFC Bank’s low-cost Casa deposits increased by 27% from the previous year to Rs 6.15 trillion during the fiscal fourth quarter. Federal Bank’s Casa deposits increased by 26% to Rs 58,381 crore.

HDFC Bank and Federal Bank have also surpassed the industry lending growth levels for the March quarter. HDFC Bank’s loans increased by 13.9% from the previous year; Federal Bank has recorded 9% loan growth.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in