Deposits
Continued slowdown in bank deposit growth in June qtr: Report
Mumbai: Concerns about a continued slowdown in bank deposit growth persist, with several top lenders experiencing a sequential decline in deposits in the June quarter of FY25, media reports said.
Provisional data from at least 13 banks show a 1.15 percent decrease in deposits compared to the March quarter of the previous fiscal year, according to a Moneycontrol report.
Bank of Maharashtra reported total deposits of Rs 2.67 lakh crore in Q1FY25, a 1 percent decline from Rs 2.70 lakh crore in Q4FY24, the report said.
Similarly, Yes Bank’s total deposits fell by 0.75 percent to Rs 2.64 lakh crore from Rs 2.66 lakh crore during the same period, it said.
Bandhan Bank recorded the steepest decline, with deposits dropping 1.5 percent to Rs 1.33 lakh crore at the end of June 2024 from Rs 1.35 lakh crore at the end of March 2024, the report stated.
HDFC Bank's deposit performance did not significantly impact the market, as its stock had already fallen over 4 percent in trade, according to the report.
Unlike its smaller peers, HDFC Bank did not see a sequential decline in its deposit base, maintaining deposits at Rs 23.80 lakh crore in the June FY25 quarter.
Reflecting the banks' performance, the Bank Nifty index was down 1 percent at 52,573.75 on July 5.
The mobilisation of low-cost current account-savings account (CASA) deposits was also lackluster, the report said.
Many top lenders saw a sequential drop in CASA deposits in Q1FY25, the report said.
HDFC Bank’s CASA deposits stood at Rs 8.63 lakh crore, down 5 percent from Rs 9.08 lakh crore in the previous quarter, it added.
Among private lenders, Bandhan Bank experienced the largest drop in CASA deposits, which fell 11.1 percent to Rs 44,453 crore from Rs 50,151 crore.
Yes Bank's CASA deposits decreased by 1.1 percent to Rs 81,405 crore in Q1FY25. State-run Bank of Maharashtra also saw a 6.6 percent sequential decline in CASA deposits, which stood at Rs 1.33 lakh crore in Q1FY25.
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