Bandhan Bank’s total deposits rose 21% year-on-year(y-o-y) as on December 31, provisional data from the lender showed on Saturday. In comparison, the Kolkata-based bank’s loans and advances rose a mere 14% y-o-y.
In fact, provisional data shows that several banks have seen a surge in their deposits in the reporting quarter, as they hiked their fixed deposit rates in a bid to fight against the liquidity crunch in the financial system.
Effective from Thursday, Bandhan Bank is offering an interest rate of up to 8% per annum on less than Rs 2 crore fixed deposits.
Broadly, outstanding loans and advances stood at Rs 1 trillion as on December 31, up 5% quarter-on-quarter(q-o-q). Deposits rose a mere 3% q-o-q to Rs 1 trillion as on December 31.
The growth in the bank’s deposits was due to bulk deposits, which surged 139% y-o-y and 22% quarter-on-quarter (q-o-q). Retail term deposits rose 3% y-o-y and 2% q-o-q.
On the other hand, low-cost current account savings account (CASA) deposits fell 3% y-o-y and 8% q-o-q.
The share of retail deposits within the total deposit franchise fell to 69% as December 31, from 85% a year ago, and 74% a quarter ago.
Similarly, the bank’s CASA ratio fell to 36.4% as on December 31, from 45.6% a year ago, and 40.8% a quarter ago.