IDFC First Bank says retail deposits grew 16% q-o-q in Q4, withholds total deposit data

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Published: April 10, 2020 4:30:39 AM

Over the past two weeks, several private banks have made disclosures about changes in their deposit base amid concerns of them losing institutional deposits in the wake of Yes Bank’s collapse in Q4FY20.

A closer look at the numbers shows that IDFC First Bank’s total deposit base declined sequentially during the March quarter. A closer look at the numbers shows that IDFC First Bank’s total deposit base declined sequentially during the March quarter.

IDFC First Bank on Thursday said its retail deposits grew 16% sequentially during the quarter ended March to Rs 33,898 crore. The growth in retail deposits on a year-on-year (y-o-y) basis was 157%. The bank did not share the value of its institutional deposit base.

Over the past two weeks, several private banks have made disclosures about changes in their deposit base amid concerns of them losing institutional deposits in the wake of Yes Bank’s collapse in Q4FY20.

A closer look at the numbers shows that IDFC First Bank’s total deposit base declined sequentially during the March quarter. The bank said its retail deposit ratio improved to 52.3% as on March 31, 2020, from 43.45% as on December 31, 2019. This puts the total size of its deposit base at Rs 64,814 crore at the end of March 2020, down 3.8% from Rs 67,358 crore at the end of December 2019.

During Q4FY20, the bank’s current account savings account (CASA) deposits grew 28% sequentially to `20,758 crore, as on March 31. On a y-o-y basis, the growth in CASA deposits was 163%. The CASA ratio improved to 32.03% as on March 31, 2020 from 24.06% as on December 31, 2019, and 11.4% as on March 31, 2019.

Certificates of deposit (CDs) outstanding fell 75% y-o-y to Rs 7,111 crore as on March 31, 2020.

“As part of the stated strategy of the bank, the bank continued to reduce large wholesale loans and increase the retail loan book as per trend of the earlier quarters,” the lender said in a statement to the exchanges.

Its retail assets grew 32.4% y-o-y to Rs 54,027 crore as on March 31, 2020. Wholesale funded assets, including stressed equity and security receipts, fell 29% y-o-y to Rs 40,415 crore at March end.

The priority-sector limit (PSL) buyouts fell to Rs 5,312 crore, excluding rural infrastructure development fund (RIDF) of Rs 2,735 crore from the year-ago figure of Rs 9,468 crore, excluding RIDF of Rs 3,456 crore. The underlying assets of these PSL buyouts are retail loans, the bank said.

Retail loans as a proportion of total funded assets improved to 60% as on March 31, 2020, from 47% a year ago, on including these PSL buyouts in the retail funded assets.The liquidity coverage ratio (LCR) of IDFC First Bank increased to 140% as on March 31, 2020, from 114% a quarter ago. “The Bank continues to remain well-capitalised with common equity ratio (CET1) estimated to be around 13% at 31st March, 2020,” it said in the notification.

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