Banks Report Q3 Numbers for Deposits and Loan Growth

With the results season about to start, a slew of banks have started issuing their loan and deposit growth numbers for the Dec-21 quarter. Let us first look at the macro picture.

Business Momentum remain strong in Q3

Out of the 8 banks that reported high frequency banking data on loans and deposits, the summary is of an industry-level loan growth of 7.25% YoY. However, the sequential growth is likely to be lower at 3.26%.

Among the banks that reported above industry-average growth in loans, Bank of Maharashtra reported 23% YoY growth albeit on a lower base. HDFC Bank grew its loan book at 16.5% YoY. All these are provisional figures only.

Among the other banks that led the way with higher than industry growth benchmarks were Federal Bank, Catholic & Syrian Bank and IDFC First Bank. However, a number of banks reported below industry average growth in loans and these include banks like Karur Vysya Bank, Karnataka Bank and Yes Bank. Yes Bank is bottom of the heap in terms of YoY loan growth at less than 4% based on the provisional figures submitted by the bank.
 

Detailed updates given by HDFC Bank and Yes Bank
 

The two private sector banks, HDFC Bank and Yes Bank shared detailed updates on their performance for Q3 in terms of high frequency indicators. As we have seen earlier, HDFC Bank led the way with 16.5% loan growth while Yes Bank lagged with loan growth of just about 3.9% on a YoY basis. Here is a quick look at these two bank numbers in detail.

HDFC Bank reported YoY growth of 16.5% in total advances at Rs.12.60 trillion in the Dec-21 quarter. The corresponding figure was Rs.10.82 trillion in Dec-20 quarter. Even on a sequential basis, compared to Sep-21 quarter, HDFC Bank reported 5% loan growth.

Its aggregate deposits were up 13.8% YoY at Rs.14.46 trillion with the big deposit growth trigger coming from CASA deposits. Currently, CASA accounts for 47% of total deposits.

Yes Bank loan growth was relatively muted at 3.9% on YoY basis at Rs.1.76 trillion as of Dec-21 quarter end. On a sequential basis, the loan growth was slightly muted at 2.1%. Its deposit base was up by 4.3% YoY at Rs.1.84 trillion as of end of Dec-21.

However, CASA deposits accounted for just about 31% of the total deposit base of Yes Bank, due to its traditionally strong corporate deposit base. Yes Bank LCR has improved sharply in Q3.