Largest private sector lender HDFC Bank on Thursday reported that its overall deposits grew faster than credit in Q4FY24 on a quarter-on-quarter (QoQ) basis, according to provisional data filed with exchanges. Shares of the bank ended trading 3.1% higher at Rs 1,527.90 apiece on the BSE, as concerns around the bank’s ability to mobilise deposits dissipated.
HDFC Bank’s overall deposits stood at Rs 23.80 trillion as on March 31, 2024, up 26% year-on-year (YoY) and 7.5% sequentially. Low-cost current account and savings account (CASA) ratio improved as well, rising from 37.7% in Q3FY24 to 38.2% in Q4FY24. Gross advances, meanwhile, rose 55% YoY and 2% sequentially to Rs 25.08 trillion as on March 31.
“The figures for the period ended March 31, 2024 include the operations of erstwhile HDFC Limited which amalgamated with and into HDFC Bank on July 01, 2023 and hence are not comparable with those of the corresponding period of the previous year,” the lender said.
According to Jefferies, the bank’s provisional Q4FY24 numbers had three positive takeaways including strong deposit mobilisation, with total retail deposit mobilisation of Rs 1.3 trillion during the reporting quarter, as against Rs 50,000 crore in previous quarter and Rs 1.1 trillion in the corresponding period a year ago. Pullback in loan growth on a sequential basis by contracting corporate loans has also helped lower the credit-deposit ratio or loan-to-deposit ratio (LDR).
“These (factors) have helped lower LDR by over 600 bps (basis points) QoQ to 105%. LDR is still higher, but direction is encouraging; LCR (liquidity coverage ratio) isn’t disclosed. Result (for Q4FY24) is on 20 April and margin direction will be key to watch,” the brokerage said.
Apart from HDFC Bank, other private sector lenders too reported their deposit growth outpacing credit growth on a QoQ basis during Q4FY24. For instance, YES Bank’s overall deposits rose 22.5% YoY and 10% QoQ to Rs 2.66 trillion, whereas overall advances rose 14% YoY and 5% QoQ to Rs 2.28 trillion as on March 31, 2024. The bank’s CASA ratio improved on both QoQ and YoY basis to stand at 30.9% during Q4FY24.
Federal Bank, meanwhile, reported its overall deposits at Rs 2.52 trillion as on March 31, 2024, up 18% YoY and 5% QoQ. Overall advances of the bank, on the other hand, rose 20% YoY and 5% QoQ to Rs 2.12 trillion during the same period. Lastly, RBL Bank’s overall deposits rose 22% YoY and 12% QoQ to Rs 1.03 trillion as on March 31, while gross advances rose 19% YoY and 5% QoQ to Rs 85,640 crore.