Yes Bank on Tuesday said its loans and advances grew 14% year on year (YoY) on a provisional basis to Rs 1.87 trillion as on June 30, 2022. In a similar business update, RBL Bank said its gross advances grew 7% YoY, slower than its peers, to Rs 62,095 crore, while South Indian Bank’s loan book grew 11% YoY to Rs 64,760 crore.
Yes Bank’s deposits grew 18.3% YoY to Rs 1.93 trillion as on June 30, 2022. However, the lender saw its deposit base shrinking 2% on a sequential basis. Its low-cost current account savings account (CASA) ratio improved to 31.6% from 28.1% a year ago.
“With respect to deposits, daily average deposit balances in Q1FY23 have sequentially grown by 4.4% on the back of sequential growth of 9.2% in daily average CASA balances,” Yes Bank said in a communication to the stock exchanges.
RBL Bank’s total deposits grew 6% YoY to Rs 79,217 crore, with the CASA ratio improving to 36% from 33.7% a year ago. The bank’s retail advances de-grew 5% YoY and 3% sequentially while wholesale advances grew 22% YoY and 4% sequentially for the quarter ended June 30, 2022. Retail advances accounted for 51% of the loan book. “Asset quality parameters on the portfolio continue to see improvement in Q1FY23, in line with the improving trend of the past few quarters,” RBL Bank said.
South Indian Bank’s total deposits grew 4% YoY to Rs 88,202 crore as on June 30, 2022. The CASA ratio improved to 34% from 30% a year ago. Most private banks who have shared business updates for the quarter ended June have seen double-digit growth, in line with overall banking system growth. While non-food credit growth improved to 12.6% in May, the pick-up in demand has been uneven and concentrated in metropolitan markets, analysts said.
“We believe that the lenders would continue to remain optimistic of growth and would probably be comfortable to take more risks. This would be reflected in the quality of loan growth where we would look at expansion into MSME (micro, small and medium enterprises), self-employed segments or towards a marginally higher risk-reward segment,” Kotak Institutional Equities said in a recent report.