IDFC First Bank MD and CEO V. Vaidyanathan said that there was no slowdown and that the demand was strong at the lower end of the ecosystem.
Private sector lender IDFC First Bank has said the growth is returning and that its retail loan book is growing upwards of 25 per cent while its retail deposits and CASA (current account and savings account) are growing 60 per cent upwards on a year-on-year basis. “If the industry is growing at a 15-20 per cent on the retail side, then there is already an outreach. There are no liquidity issues at the moment,” V. Vaidyanathan, MD & CEO, IDFC First Bank told IANS. His comments come after the meeting of private bankers, including him, MFIs, and NBFCs with the Finance Minister Nirmala Sitharaman on Thursday to discuss credit outreach programme.
Vaidyanathan said that there was no slowdown and that the demand was strong at the lower end of the ecosystem. The bankers had told Nirmala Sitharaman about the demand existing in rural India and among small borrowers. The minister, talking to reporters after the meeting, said that if there was any slight liquidity shortage it was in the wholesale segment even as the economy will see an uptick in the coming festive season while the slowdown seems to have bottomed out.
IDFC First Bank had reported Rs 617 crore in net loss for the June quarter this fiscal year on account of higher provisioning while its net profit was Rs 181 crore in the same quarter of the previous fiscal year, PTI reported. The bank’s shares were trading at Rs 42.35 ( -1.25 ) (2.87%) on Friday.
CASA ratio is the ratio of current and saving accounts deposits to total deposits. Higher CASA ratio would mean lower cost of funds since banks don’t usually pay interest on current account deposits while in case of saving accounts, it is usually 3-4 per cent only. IDFC Bank had announced the change of its name to IDFC First Bank in January this year following its merger with NBFC Capital First in December last year.