Punjab National Bank, Yes Bank and South Indian Bank have reported a healthy growth of 12-13% in advances in the second quarter of current financial year, showed the provisional quarterly business update released by the lenders.
Meanwhile, growth in total deposits have remained sluggish. However, Yes Bank emerged as an outlier of the three banks, with an 18% growth in deposits, surpassing the growth in advances.
PNB’s total business rose 12% to Rs 25.23 lakh crore compared to Rs 22.51 lakh crore a year ago. Its domestic loans and advances grew 11.84% on year to Rs 10.13 lakh crore. The global advances grew 13% on year and 3.5% on quarter to Rs 10.64 lakh crore. The credit to deposit ratio of the bank was at 72.94% for the quarter.
PNB reported an 11.4% increase in total deposits to Rs 14.59 lakh crore against Rs 13.09 lakh crore at the end of the second quarter of the previous financial year, the bank said in a regulatory filing.
Separately, PNB has recently announced a qualified institution placement (QIP) of its equity shares. The bank allocated about 48.19 crore equity shares at an issue price of Rs 103.75 per share, which was at a discount of 4.96% to the floor price of Rs 109.16 apiece, PNB said in a statement.
Meanwhile, Yes Bank posted a 13% rise in advances to Rs 2.36 lakh crore. The private lender registered an 18% increase in deposits to Rs 2.77 lakh crore.
However, compared to the quarter ended June, the deposit growth was at 20.9%, showing signs of moderation in deposit growth. Sequentially, deposits grew by 4.6% from the June quarter, indicating a slow pace of deposit growth.
Despite, the rise in deposits and growth in loans and advances, shares of Yes Bank fell 2.4% to Rs 21.88 as the liquidity coverage ratio of the bank fell to 131.9% against 137.8% in June and 120.9% in the year-ago quarter.
Yes Bank’s credit to deposit (CD) ratio dipped to 85.3% for the quarter ended September from 89.2% a year ago. The Reserve Bank of India has been flagging the increasing gap in credit growth and deposit growth of the banking sector which pushed the industry CD ratio to 77.16% as on September 6, up from 76.07% about a year ago.
South Indian Bank gross advances rose 13.07% on year to Rs 84,741 crore in the quarter ended September, the bank said in an exchange filing. On the other hand, the bank’s deposits grew 8.6% to Rs 1.05 lakh crore against Rs 97,085 a year ago. The CASA ratio fell to 31.9% from 32% on year.