MUMBAI: HDFC Bank has reported 16.3% growth in deposits and 14% in advances during the year 2020-21. Yes Bank and IndusInd Bank too have reported high deposit growth of 54.7% and 27.7% respectively, indicating a gain in market share after a turbulent fourth quarter in FY20.
Although industry business figures for the banking sector will be known only in the coming weeks, RBI data up to mid-March indicates that banking sector growth in deposits will be below 11% and advances at below 6%.
In a statement to the exchanges, HDFC Bank said that its deposits stood at Rs 13.4 lakh crore at the end of March 2021 — an increase of 5% over the previous quarter and a 16.3% increase for the financial year.
The private lender’s loans stood at Rs 11.3 lakh crore — an increase of 4.6% over the previous quarter and 13.9% year-on-year. This shows that a large chunk of the banking sector’s loan growth has come from HDFC Bank.
Yes Bank has said that its deposit base at Rs 1.6 lakh crore is 11.4% higher than the previous quarter and 54.7% higher than the previous year when the bank saw a run on its deposits. Its loan book at Rs 1.7 lakh crore has recorded a 1.8% growth quarter on quarter and 0.8% growth over the year.
IndusInd Bank has seen its deposits grow 27.7% year-on-year to over Rs 2 lakh crore (7% quarter-on-quarter). The lender’s advances grew 3% over the year and over the quarter to nearly Rs 2.1 lakh crore.
According to a research report by Emkay Global, the bank has accelerated the purchase of mortgage loans from HDFC to Rs 7,500 crore in Q4 from Rs 7,100 crore in Q3.
“Corporate growth remains strong at 21% year-on-year owing to healthy working capital demand and the bank’s focus on capturing market share in better-rated corporates. The bank expects the momentum to continue as the private investment cycle is likely to revive from H2FY22,” the report said.