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Reflecting the normalisation in economic activities, a number of private sector banks have posted strong growth in advances ahead of their first-quarter results.
The country’s largest private sector lender HDFC Bank reported a 21.5 per cent year-on-year (y-o-y) jump in advances to ₹13.95-lakh crore as on June 30, 2022, from ₹11.47-lakh crore a year ago. On a sequential basis, it was a growth of 1.9 per cent in advances from ₹13.68-lakh crore as on March 31, 2022.
As per the bank’s internal business classification, retail loans grew by around 21.5 per cent over June 30, 2021, and around 5 per cent over March 31, 2022, HDFC Bank said in a stock exchange filing on Monday. The bank’s commercial and rural banking loans grew by around 29 per cent over June 30, 2021, and corporate and other wholesale loans grew by around 15.5 per cent over June 30, 2021, and were at a level similar to that as of March 31, 2022.
HDFC Bank’s deposits increased 19.3 per cent to ₹16.05-lakh crore as on June 30, 2022, from ₹13.45-lakh crore a year ago. It was a growth of around 2.9 per cent over ₹15.59-lakh crore as of March 31, 2022.
Federal Bank also reported a 16.3 per cent growth in gross advances to ₹1,54,405 crore as on June 30, 2022, from ₹1,32,787 crore as of June 30,2021. “As per internal classification, retail credit book grew by 16.7 per cent and wholesale credit book grew by 15.8 per cent,” the bank said in a stock exchange filing on July 3. Federal Bank’s total deposits increased 8.2 per cent to ₹1,83,355 crore as on June 30, 2022, from ₹1,69,393 crore a year ago.
IndusInd’s performance
IndusInd Bank has posted an 18 per cent growth in net advances to ₹2,49,541 crore as on June 30, 2022, from ₹2,10,727 crore on June 30, 2021. Net advances increased 4 per cent quarter on quarter for the lender from ₹2,39,052 crore as on March 31, 2022.
The bank’s deposits increased by 13 per cent to ₹3,03,094 crore as on June 30, 2022, as against ₹2,67,630 crore a year ago. On a sequential basis, deposits grew three per cent from ₹2,93,681 crore as on March 31, 2022. “Retail deposits and deposits from small business customers amounted to ₹1,24,105 crore as of 30 June 2022 as compared to ₹1,20,507 crore as of 31 March 2022,” IndusInd Bank said in a stock exchange filing.
According to data with the Reserve Bank of India, non-food bank credit grew 12.6 per cent in May 2022 as compared with 4.9 per cent a year ago.
Bankers are hopeful of continued demand for credit despite the increase in interest rates and global uncertainty impacting business sentiment.
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