INSUBCONTINENT EXCLUSIVE:
Mumbai: Private sector lenders HDFC Bank and Kotak Mahindra Bank outperformed their peers on deposits and advances in the March quarter that
was marked by flight of deposits, beginning of a national lockdown to combat Covid-19 and a regulatory moratorium on loans repayment.
HDFC
said in a regulatory filing.
Kotak Mahindra Bank said deposits grew 19.6 per cent on-year to Rs 2.58 lakh crore and its low-cost current
account-savings account (CASA) ratio was among the highest in the industry at 56.2 per cent
growth, and this is at a time when there were questions being raised on depositor confidence in private sector banks; [it] clearly goes to
in its deposits, which stood at Rs 21,400 crore; although it is a small proportion of its overall liabilities
AU Small Finance Bank said its deposits rose 34 per cent.
Private sector banks have been at the receiving end of investors for more than a
month as the moratorium imposed on Yes Bank before its bailout led to withdrawal of wholesale deposits by some, including state governments
It also led to the Reserve Bank of India governor Shaktikanta Das declaring that the system was safe and deposits at private banks were also
withdrawals of deposits from a few private sector banks
It would be fallacious to link share prices to safety of deposits
end of March quarter to Rs 2.02 lakh crore versus Rs 1.94 lakh crore a year ago
Its deposits had grown 23 per cent at the end of December
The bank had recently said that it saw a tenth of its deposits flow out, as one major state-government withdrew its liabilities
Its advances grew 13 per cent at the end of March 2020, slower than the 20 per cent growth in credit at the end of December quarter.
RBL,
too, lost 8 per cent of its deposits in the month of March as a few government entities and corporations took flight.
