Page 7 - Bank Deposits
Bank of Maharashtra records 22% loan growth to Rs 1.57 trillion in Q3
State-owned Bank of Maharashtra (BoM) on Tuesday said it has posted a credit growth of 21.81 per cent to Rs 1.57 lakh crore for the third quarter ended December 2022. The outstanding credit was Rs 1.29 lakh crore at the end of December 31, 2021, BoM said in a regulatory filing. The bank's deposits aggregated to about Rs 2.08 lakh crore as of December 31, 2022, registering a growth of 11.69 per cent over Rs 1.86 lakh crore at the end of December 31, 2021, it said. During the quarter, it said, the Current Account Savings Account (CASA) stood at 52.50 per cent of the total deposits. The Pune-headquartered lender recorded a total business growth of 15.83 per cent to Rs 3.65 lakh crore at the end of third quarter, as compared to Rs 3.15 lakh crore at the end of the same quarter in the previous fiscal.
 "Bank of Maharashtra records 22% loan growth to Rs 1.57 trillion in Q3")
Post-LVB integration, DBS aiming to treble growth in 5 years: MD & CEO
Surojit Shome, MD and CEO of DBS Bank India, said having crossed the Rs one trillion business (deposit and loans) mark in September, the bank is looking to grow 3x in five years
 "Post-LVB integration, DBS aiming to treble growth in 5 years: MD & CEO")
Credit offtake grows 17.5% for fortnight ended Dec 2: CARE Ratings
The growth is driven by a low base, NBFC, retail credit, higher working capital demand driven by inflation and improvement in capacity utilisation ratio, and rising demand for fresh capex
 "Credit offtake grows 17.5% for fortnight ended Dec 2: CARE Ratings")
Banks increase deposit rates on tight liquidity, high credit growth
Banks have made a beeline to increase rates on their deposits as liquidity in the system has tightened and the credit growth in the system has remained consistently high
 "Banks increase deposit rates on tight liquidity, high credit growth")
Valuation gap with peers is expected to narrow for Axis Bank
It is leveraging the digital ecosystem, focusing on acquisition of corporate salary accounts, and also cross-selling products to existing clients
 "Valuation gap with peers is expected to narrow for Axis Bank")
Bank credit grows 17.5% in a fortnight; deposits up 10%: RBI data
Country's largest lender State Bank of India (SBI) raised deposit rates by 15-100bps, the maximum increase being for bulk deposits
 "Bank credit grows 17.5% in a fortnight; deposits up 10%: RBI data")
Banks rush to hike deposit rates, raise funds amid firm loan growth
Major private lenders such as HDFC Bank, ICICI, Axis revise rates; deposit rates now catching up with RBI rate hikes
 "Banks rush to hike deposit rates, raise funds amid firm loan growth")
Wide gap between bank credit and deposit growth seen declining
Lower GDP growth, RBI rate hikes, reversal of base effect to blunt credit growth, analysts say
 "Wide gap between bank credit and deposit growth seen declining")
Trend shift? Bank deposits rise four times versus credit outflows
Credit rose by Rs 0.43 trillion to Rs 129.26 trillion and deposits grew by Rs 1.7 trillion to Rs 173.7 trillion in the reporting fortnight
 "Trend shift? Bank deposits rise four times versus credit outflows")
Banks' loans rose 17% Y-o-Y in two weeks to Nov 4, deposits up 8.2%: RBI
Bank deposits rose Rs 1.69 trillion to Rs 173.70 trillion in the two weeks to Nov 4
 "Banks' loans rose 17% Y-o-Y in two weeks to Nov 4, deposits up 8.2%: RBI")
TMS Ep304: Slow deposit growth, Tech layoffs, S Naren, Twitter's blue tick
Why's RBI governor worried about deposit growth? Where did big tech and startups go wrong on hiring? What's worrying S Naren when it comes to equity markets? What is Twitter's blue tick? Answers here
 "TMS Ep304: Slow deposit growth, Tech layoffs, S Naren, Twitter's blue tick")
Share of low-cost deposits falls as FD rates rise, banks' NIM may take hit
With RBI on monetary tightening path, liquidity has shrunk and interest rates have hardened, forcing banks to hike rates on term deposits in order to get funds for credit growth
 "Share of low-cost deposits falls as FD rates rise, banks' NIM may take hit")
Bandhan Bank offers 7.5% interest rate on retail FDs for limited period
Rate applicable to both fresh deposits and renewals of up to Rs 2 crore for a tenure of 600 days, seniors to get 0.5% more
 "Bandhan Bank offers 7.5% interest rate on retail FDs for limited period")
Banks' reliance on deposits increases amid strong credit growth
Banks have raised over 3.51 trillion Indian rupees($42.41 billion) through certificate of deposits (CDs)in April-October, 22% higher than the 2.87 trillion rupees raised in 2021-2022
 "Banks' reliance on deposits increases amid strong credit growth")
Deposit rates may rise 105 bps due to 190 bps repo rate hike: SBI report
CASA occupies a 45% share in overall bank deposits; it is FDs, which make the remaining 55%, which will need the rate adjustment
 "Deposit rates may rise 105 bps due to 190 bps repo rate hike: SBI report")
The battle for deposits will intensify
The challenge before the banking system is how to keep the net interest margin healthy in a rising interest rate cycle
Flows into NRIs deposits moderate to $1.43 billion in Apr-Aug period
Outstanding NRI deposits declined to $134.68 billion at the end of August 2022 from $141.52 billion a year ago
 "Flows into NRIs deposits moderate to $1.43 billion in Apr-Aug period")
Private banks show healthy loan, deposit growth in Q2, Casa share dips QoQ
According to RBI data, bank credit grew at 16.2% YoY as on September 9, while deposits were up by 9.5%
 "Private banks show healthy loan, deposit growth in Q2, Casa share dips QoQ")
Banks increase interest rates on bulk deposits as liquidity tightens
Loan, deposit growth gap at 10-year high
 "Banks increase interest rates on bulk deposits as liquidity tightens")
Mutual funds' share in household savings jump 150% in FY22: RBI data
Retail investments in MF rise as flows into bank deposits drop
 "Mutual funds' share in household savings jump 150% in FY22: RBI data")