Most banks who have provided provisional data for the fiscal third-quarter have shown strong loan and deposit growth, indicating that their profitability run would continue in the three-month period ended 31 December 2022.

HDFC Bank and Yes Bank were the only lenders among the lot who had deposits outpacing their credit growth in the December quarter. HDFC Bank led the pace with a year-on-year deposit growth of 19.9% while Yes Bank posted a rise of 15.9%. Their credit growth YoY stood at 19.5% and 11.7%, respectively.

Credit offtake over the last 12 months has grown 17.5% or Rs 19.5 lakh crore in absolute terms, whereas deposits have grown 9.9% or Rs 15.7 lakh crore as of 2 December 2022, as per RBI data.

The growth performance over the preceding quarter was comparatively moderate in case of all the banks who announced the Q3 data, both on the deposit and the loan side. Despite the fiscal third quarter being a festive season, credit growth probably slowed down sequentially because of a high base in the preceding quarter. Credit growth had already ignited this financial year and the second and third quarters ran a continuity of this trend. 

On the deposit front, the year-on-year growth was more sharp because banks were offering low interest rates on fixed deposits in the previous fiscal. Also, banks started increasing their deposit rates, particularly after October. It is only after October this year that banks really raised fixed-deposit interest rates.

All the banks reported a double-digit YoY credit growth as corporates started drawing down on their sanctioned pipelines and also exercised their working capital limits. On the deposit side, Punjab & Sind Bank, Karnataka Bank and Dhanlaxmi Bank were the only banks who saw their growth fall below double-digit YoY in the fiscal third quarter ended 31 December.

State-owned Bank of Maharashtra reported a 21.8% YoY rise in credit growth (6% QoQ) while private lender IndusInd Bank saw a 19% growth (4.6% QoQ). Punjab & Sind Bank posted a 17% YoY increase in loan growth for the fiscal third quarter (5.8% QoQ) while Karnataka Bank had a 12.4% increase (4.4% QoQ) and Karur Vysya Bank 14.1% (2% QoQ). 

The Kerala-headquartered private banks had very strong credit growth, probably due to a spurt in gold loans. While CSB Bank had a 25.7% YoY loan growth, Dhanlaxmi Bank saw 22.5% growth and Federal Bank 19.1%. The QoQ growth stood at 5.6%, 1.6% and 4.3% for these banks, respectively.

The YoY growth in deposits for CSB Bank was 18.9% while Federal Bank saw a 14.8% rise. Dhanlaxmi Bank’s deposit growth was below double-digit at 6.8% on a YoY basis and 1.4% QoQ. CSB Bank saw an 8% rise in deposits on a sequential basis and while Federal Bank reported a 6.5% QoQ rise. 

On the deposit side, banks posted strong growth in the December quarter due to rise in interest rates on fixed deposits. CASA (current account savings account), however, saw a decline. HDFC Bank, India’s largest private sector bank, saw its CASA ratio fall to 44% as of 31 December, compared to 47.1% a year ago and 45.4% a quarter ago. 

HDFC Bank reported a 19.9% YoY deposit growth for the third quarter (3.6% QoQ), IndusInd Bank 14.3% (3% QoQ), Bank of Maharashtra 11.7% (6.4% QoQ), Yes Bank 15.9% (6.8% QoQ), Punjab & Sind Bank 9.1% (4.1% QoQ), Karnataka Bank 7.9% (3.6% QoQ) and Karur Vysya Bank 13.9% (3.5% QoQ). 

The banks who have announced their provisional Q3 data include HDFC Bank, IndusInd Bank, Bank of Maharashtra, Yes Bank, Federal Bank, Punjab & Sind Bank, Karnataka Bank, CSB Bank, Dhanlaxmi Bank and Karur & Vysya Bank. Leading banks like State Bank of India, ICICI Bank, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and Axis Bank have yet to come out with their third quarter numbers.

HDFC Bank Q3 update

HDFC Bank reported a 19.5% increase in credit growth to Rs 15 lakh crore for the third quarter ended December.

On a sequential basis, the bank posted a 1.8% growth over the September 2022 quarter's figure of Rs 14.7 lakh crore.

The lender’s domestic retail loans grew by around 21.5% over the year-ago period and 5% over the preceding quarter; commercial and rural banking loans grew by around 30% and 5%, respectively. Corporate and other wholesale loans grew by around 20% over December 31, 2021 but were lower by around 1% compared to September 30, 2022.

The bank's deposits aggregated to approximately Rs 17.3 lakh crore as of 31 December 2022, a growth of around 19.9% over Rs 14.4 lakh crore in the year-ago period.

The bank bought loans worth Rs 8,892 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation (HDFC), its parent entity.

Bank of Maharashtra Q3 update

Bank of Maharashtra’s loan book jumped 21.81% YoY to Rs 1,57,139 crore as of 31 December 2022 and 6.02% QoQ.

Total deposits stood at Rs 2,08,436 crore as of 31 December 2022, up 11.7% from the year-ago period and 6.43% QoQ.

CASA ratio stood at 52.50% as of 31 December 2022 as against 55.05% a year ago and 56.27% a quarter ago.

Yes Bank Q3 update

Yes Bank’s net advances rose 11.7% YoY  and 2.4% QoQ to Rs 196,826 crore as of 31 December 2022.

Gross retail disbursements stood at Rs 12,189 crore as on 31 December 2022 as against Rs 9,313 crore a year ago and Rs 12,563 crore a quarter ago.

Deposits rose 15.9% YoY and 6.8% QoQ to Rs 213,608 crore as on 31 December 2022. Certificate of Deposits (CDs) stood at Rs 3,236 crore as on 31 December 2022.

CASA to total deposit ratio stood at 30.4% as on 31 December 2022 versus 31.2% a year ago and 31.3% a quarter ago.

Credit-to-deposit ratio was at 89.7% as on 31 December 2022 as against 95.6% a year ago and 96.1% a quarter ago. 

IndusInd Bank Q3 update

IndusInd Bank reported a 19% YoY rise in net advances to Rs 2.72 lakh crore in Q3 FY23. 

Deposits rose 14% YoY to Rs 3.25 lakh crore.

Sequentially, advances and deposits grew 4.6% and 3%, respectively. 

CASA ratio stood at 42% compared with 42.2% in Q2 FY22, and 42.4% in Q2 FY23.

Punjab & Sind Bank Q3 update

Punjab & Sind Bank's gross advances rose 17% YoY to Rs 78,049 crore during the quarter ended 31 December 2022.

Total deposits for the December quarter stood at Rs 1,09,497 crore, up 9.11% from Rs 1,00,351 crore in the year-ago period.

CASA ratio fell to 33.30% from 32.63% a year ago.

Federal Bank Q3 update

Federal Bank’s gross advances grew 19.1% to Rs 1,71,043 crore YoY for the quarter ended 31 December 2022.

As per internal classification, retail credit book grew by 19.1% and wholesale credit book grew by 19.0%. Retail to wholesale ratio stood at 54:46.

Total deposits crossed the Rs 2-trillion mark, reaching Rs 201,425 crore, with a rise of 14.8% over Rs 1,75,432 crore as of 31 December 2021. 

The CASA ratio declined to 34.25% compared to 36.68% a year ago and 36.41% a quarter ago.

CSB Bank Q3 update

CSB Bank’s gross advances rose 25.74% YoY to Rs 18,643.32 crore as on 31 December 2022.

Advances against gold & gold jewellery (including receivables secured against gold) stood at Rs 8,772.48 crore, up 50.81% YoY.

The bank's total deposits grew 18.93% YoY to Rs 22,664.02 crore as on 31 December 2022.

Dhanlaxmi Bank Q3 update

Dhanlaxmi Bank’s gross advances grew 22.48% YoY to Rs 9,250 crore as on 31 December 2022.

Gold loans stood at 2,084 crore, up 23.02% from the year-ago period.

Total deposits grew 6.78% to Rs 12,922 crore.