Banks report strong growth in advances

Reflecting the normalization of economic activities, a number of private sector banks reported strong growth in advances ahead of their Q1 results.

The country’s largest private sector lender HDFC Bank reported a 21.5 percent year-on-year (y-o-y) jump in advances to ₹13.95 lakh crore as of June 30, 2022 from ₹11.47 lakh crore a year ago . On a sequential basis, this was a growth of 1.9 percent in advances of ₹13.68 lakh crore as on March 31, 2022.

According to the bank’s internal business classification, retail loans grew by about 21.5% from June 30, 2021 and about 5% from March 31, 2022, HDFC Bank said in a stock exchange filing on Monday. The bank’s commercial and rural banking loans grew by about 29 percent as on June 30, 2021, and corporate and other wholesale loans grew by about 15.5 percent as on June 30, 2021 and were at a similar level as on March 31 , 2022

HDFC Bank’s deposits increased 19.3 percent to ₹16.05 lakh crore as of June 30, 2022 from ₹13.45 lakh crore a year ago. This was a growth of about 2.9 percent over ₹15.59 lakh crore as of March 31, 2022.

Federal Bank also reported 16.3% growth in gross advances to ₹1,54,405 crore as on June 30, 2022 from ₹1,32,787 crore as on June 30, 2021. “As per internal classification, the retail loan book grew by 16, 7% and the wholesale loan portfolio grew by 15.8%,” the bank said in a July 3 stock exchange filing. Federal Bank’s total deposits increased 8.2% to ₹1,83,355 crore as on June 30, 2022 from ₹1,69,393 crore a year ago.

Introducing IndusInd

IndusInd Bank reported 18 percent growth in net advances to ₹2,49,541 crore as on June 30, 2022 from ₹2,10,727 crore as on June 30, 2021. Net advances rose 4 percent quarter-on-quarter for the lender from ₹2,39,052 crore as of March 31, 2022

The bank’s deposits increased 13 percent to ₹3,03,094 crore as of June 30, 2022, compared to ₹2,67,630 crore a year ago. On a sequential basis, deposits grew by three percent from ₹2,93,681 crore as on March 31, 2022. “Deposits from retail and small business customers stood at ₹1.24,105 crore as on June 30, 2022 compared to ₹1. , 20,507 crore as on March 31, 2022,” IndusInd Bank said in a stock exchange filing.

Non-food bank credit grew 12.6 percent in May 2022, compared with 4.9 percent a year ago, according to Reserve Bank of India data.

Bankers hope demand for credit will continue despite rising interest rates and global uncertainty weighing on business sentiment.

Published on

04 July 2022

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