Banks Q1 loan growth remain strong, share of low cost deposits falls

The credit-to-deposit ratio of the Mumbai-based private sector lender Yes Bank rose to 86.8 per cent at the end of June from 85.5 per cent at the end of March

Mid-sized and smaller private sector lenders reported healthy growth in loans in the April-June quarter (Q1) of the current financial year (FY25) while the share of low-cost deposits continued to decline.
 

Federal Bank reported year-on-year growth of 20.1 per cent in Q1 in gross advances to Rs 2.24 trillion while Yes Bank reported 14.8 per cent growth to Rs 2.3 trillion. 
 

On a sequential basis, Federal Bank reported 5.4 per cent growth in advances and Yes Bank 0.9 per cent.
 

The ratio of current and savings account (Casa) deposit to total deposit of Federal Bank fell marginally to 28.28 per cent sequentially, while for Yes Bank it fell to 30.7 per cent from 30.9 per cent.
 

Credit to deposit ratio of Yes Bank rose to 86.8 per cent in end June from 85.5 per cent in end March.

Banks	Growth in Advances YoY	Growth in Deposits YoY	CASA Ratio Q1FY25	CASA Ratio Q4FY24
Federal Bank	20.10%	19.60%	29.28%	29.38%
Yes Bank	14.80%	20.80%	30.70%	30.90%
Karur Vysya Bank	16.06%	14.41%
CSB Bank	17.80%	22.24%	24.90%	27.20%
South Indian Bank	11.35%	8.41%	31.87%	32.08%

Source: Exchange filing