Bank of Baroda, PNB log slower deposit growth than industry trend in Q1

The deposits of two large public sector lenders, Punjab National Bank (PNB) and Bank of Baroda (BoB), grew by 8.5 per cent and 8.83 per cent respectively in the first quarter of 2024-25 when compared to the same period a year ago. It was slower than 12.1 per cent Y-o-Y growth in deposits of the scheduled commercial banks till the middle of June.

The outstanding deposits of Delhi-based PNB stood at Rs 14.08 trillion at the end of June 2024. Sequentially, the deposits grew by 2.8 per cent over the end of March 2024. 

BOB’s outstanding deposits stood at Rs 13.05 trillion at the end of June 2024. Sequentially, its deposits declined from Rs 13.26 trillion, according to a filing with BSE. These are provisional figures and are subject to audit by statutory auditors.

Mumbai-based BoB’s advances grew by 8.14 per cent Y-o-Y to Rs 10.71 trillion. Sequentially, advances shrunk from Rs 10.9 trillion in March 2024.

“Weaker loan/deposit growth could impact credit offtake for FY25/26E; however, retail momentum is the silver lining,” said Gaurav Jani, Research Analyst, Prabhudas Lilladher, on Bank of Baroda.

PNB reported 12.7 per cent Y-o-Y growth in advances at Rs 10.33 crore. Sequentially, its advances rose from Rs 9.83 trillion in March 2024.

Kolkata-based UCO Bank’s deposits grew by 7.39 per cent Y-o-Y to Rs 2.68 trillion at the end of June 2024. Its advances grew by 17.78 per cent Y-o-Y to Rs 1.94 trillion.

Another public sector lender Bank of Maharashtra expanded its deposit by 9.44 per cent Y-o-Y to Rs 2.67 trillion as of June 30, 2024. Pune-based bank’s loan book grew by 19.01 per cent to Rs 2.09 trillion.