Starting the new financial year on a positive note, banks have reported a strong growth in advances in the first quarter.
HDFC Bank’s gross advances have jumped 52.6% while UCO Bank’ and Bank of Maharashtra’s gross advances have risen by 18% and 19%, respectively, according to first quarter business updates.
HDFC Bank gross advances increased to Rs 24.87 trillion for the quarter ended June 2024, compared with Rs 16.3 trillion in the year-ago period, the lender said in a stock exchange filing.
Excluding the impact of the merger, which came into effect from July 1 last year, the bank’s gross advances grew by 14.9 % over June 2023 quarter. The bank’s deposits stood at Rs 23.8 trillion in the June quarter, registering a growth of around 24% over Rs 19.13 trillion reported in the year-ago period, and were at similar levels compared to Rs 23.8 trillion in the March quarter of FY24.
Excluding the July 2023 merger impact, the bank’s deposits grew by 16.5 % over June 30, 2023.
Current account and savings account deposits of HDFC Bank jumped 6.2% to Rs 8.63 trillion in the reported quarter, compared with Rs 8.13 trillion in the year-ago period. It stood at Rs 9.08 trillion in the March quarter, which had a seasonal impact, said the lender.
Bank of Maharashtra’s gross advances increased to Rs 2.09 trillion in the first quarter, from Rs 1.75 trillion in the same quarter of the previous year. Deposits grew 9.44% year-on-year to Rs 2.67 trillion. The share of low-cost current account, savings account deposits declined to 49.86 % of total deposits as of June-end 2024, against 50.96% in the same period last year.
UCO Bank’s gross advances rose to Rs 1.94 trillion in the April–June quarter while its domestic advances were up 19.33 % to Rs 1.67 trillion as on June-end 2024, against Rs 1.40 trillion as on June-end 2023.
The public sector lender reported a growth of 7.4% in total deposits to Rs 2.68 trillion in the first quarter, compared with Rs 2.5 trillion in the same period last year. The share of CASA deposits increased marginally to 38.62% of total deposits as of end of June, against 38.10% as of June-end 2023.
Equitas Small Finance Bank’s gross advances rose 17.8% on a yearly basis to Rs 34,872 crore in the first quarter of the current fiscal while its total deposits grew 35.4% to Rs 37,524 crore, compared with Rs 27,709 crore in the same period last year.
Bandhan Bank’s advances jumped by 22% year-on-year to Rs 1.25 trillion for the quarter ended June 2024 while its deposits increased by 22.8 % to Rs 1.33 trillion. The lender’s CASA ratio declined to 33.4 % from 36 % in the year ago period.