India’s second-largest bank by assets, which took over its parent effective from July 2023, said its total advances increased 62% from Rs 15.20 lakh crore in December 2022 largely due to the merger.
Retail loans rose 3% over September 2023 while loans to commercial & rural banking increased 6.5%. Corporate & other wholesale loans grew 2% over September 2023. The bank’s deposits totalled Rs 22.14 lakh crore as of December 2023, up 1.9% from Rs 21.72 lakh crore as of September 2023. Low cost current and savings account deposits made up 37.7% of deposits as of December 2023 down from 44% a year ago and little changed from 37.6% reported in September 2023.
Macquarie analysts Suresh Ganapathy said the slower pace of deposit growth was primarily on account of a drawdown of wholesale deposits (down 3.4% q-q) and relatively lower retail
deposit mobilisation (Rs 0.9 lakh crore in 2Q vs Rs 0.5 lakh crore in 3Q)
“In the past three quarters the bank has mobilised deposits of Rs 1.8 lakh crore. Assuming Rs 1.7 lakh crore mobilization in 4Q (vs Rs 1.5 lakh crore in 4Q23), it brings us to a deposit growth of 17% on a merged balance sheet and total deposit mobilisation of Rs 3.5 lakh crore. While they will be falling short of their Rs 4 lakh crore target, in our view they will still have a 15% incremental deposit market share which is commendable,” Ganapathy said.
