Q2 advances: Federal Bank to BoM, banks clock healthy double-digit growth

Federal Bank, IndusInd Bank, Bank of Maharashtra, Dhanlaxmi Bank, and CSB Bank posted a healthy double digit growth year-on-year (Y-o-Y) in advances in the quarter ended September 30, according to multiple exchange filing of lenders.

According to the filings, IndusInd Bank and Bank of Maharashtra recorded more than 20 per cent improvement in their advances, rising to Rs 3.14 trillion and Rs 1.83 trillion, respectively, in the first quarter of FY24 compared to Q2 FY23.

Meanwhile, Federal Bank posted advances at Rs 1.95 trillion, which is 20 per cent higher than Rs 1.77 trillion. Dhanlaxmi Bank recorded around 13 per cent growth in advances to Rs 10,312 crore.

The pace of loan growth for these lenders was higher than the 15.1 per cent Y-o-Y growth in advances of the banking system until 8 September 2023, according to Reserve Bank of India’s data.

Federal Bank’s retail credit book grew by 22 per cent Y-o-Y, and its wholesale credit book grew by 17 per cent, according to its internal classification. The retail-to-wholesale ratio was at 55:45 in the total loan book.

On the other hand, the deposits of Bank of Maharashtra and Federal Bank rose by more than 20 per cent to touch Rs 2.39 trillion and Rs 2.32 trillion, respectively, from the year-ago period.

This pace of deposit mobilisation is higher than that of the banking system’s pace of 12.8 per cent Y-o-Y as on September 8.

The deposits of IndusInd Bank rose 14 per cent Y-o-Y to Rs 3.14 trillion. Of which, retail deposits and deposits from small business customers amounted to Rs 1.57 trillion as on September 30.

At the same time, Dhanlaxmi Bank saw growth of 8.17 per cent in deposits to Rs 13,789 crore.

CSB Bank recorded 27 per cent Y-o-Y growth in advances to Rs 2,268.4 crore whereas deposits rose 21.12 per cent to Rs 25,438.38 crore.

Against the trend, YES Bank posted a single-digit growth of 9.50 per cent in advances to Rs 1.92 trillion. The deposits rose by 17.20 per cent to Rs 2 trillion in the period under review.