For HDFC Bank, growth was weak in the June quarter as total credit increased 21.5% year-on-year (YoY) and 1.9% sequentially, down from credit growth 9% observed during the March quarter. Retail lending was up 21.5% year-on-year and 5% sequentially, commercial and rural lending was up 3% quarter-on-quarter, while wholesale lending was flat quarter-on-quarter. Deposits were up 19.3% from the June quarter last year and 2.9% from the March quarter.
“While the first quarter is generally weak for the lending space, HDFC Bank’s QoQ growth was somewhat weaker, leading to a lower loan-to-deposit ratio, which could dampen interest margins. sharp,” 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 of the growth in the current quarter was anticipated, which which would have resulted in a lower return.”
Private lender IndusInd Bank reported sustained business growth, with loan growth gradually improving over the past five quarters. According to the lender’s June quarter operating performance, loans were up 18.4% from the June quarter last year and 4.4% sequentially, the highest in 10 last quarters. Its total deposits increased 13.3% year-on-year and quarter-on-quarter, driven by strong CASA growth.
The Federal Bank also released its figures for the quarter ended June 30, with total lending rising 16.3% year-on-year and 4.6% quarter-on-quarter. Retail loans increased 16.7% year-on-year and the wholesale portfolio increased 15.8% year-on-year. Deposits also improved and increased by 8.2% on an annual basis.
Loan and deposit growth accelerated for private lender IDFC First Bank, with gross advances growing at a healthy pace of 21% year-on-year and 6.7% sequentially, driven by strong loan traction individuals and businesses. Personal loan growth was mainly driven by home loans, which were up 31.9% from the June quarter of last year. Exposure to the infrastructure sector continued to decline by 35% year-on-year.
Customer deposits grew at a healthy pace of 20.6% YoY while the CASA ratio improved to 50.3%, growing 11% YoY and 22.3% YoY quarterly.