Tag: CASA

Federal Bank’s deposits grow 13% in Q4

Banking & Finance

[ad_1]

Read More/Less


Advances at the end of the fourth quarter stood at Rs 134,876 crore, compared with Rs 124,153 crore in the same period last year.

Federal Bank’s deposits rose 13% year-on-year (YoY) during the fourth quarter of the previous fiscal, while gross advances reported a 9% Y-o-Y growth, the bank said in a regulatory filing.

The lender said at the end of March 2021 quarter, total deposits stood at Rs 172,655 crore, against Rs 152,290 crore in the year-ago period.

Advances at the end of the fourth quarter stood at Rs 134,876 crore, compared with Rs 124,153 crore in the same period last year.

CASA is seen at Rs 58,381 crore during Q4, an y-o-y increase of 26%. The CASA ratio is reported at 33.81%.

The liquidity coverage ratio was at 206.91% for the March quarter, compared to 196.65% in the year-ago period and 248.86% for the third quarter of the fiscal.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Private banks’ net advances grow in March quarter

Banking & Finance

[ad_1]

Read More/Less


The largest private lender HDFC Bank has shown a 13.9% year-on-year (y-o-y) growth in the loan book.

Private lenders have reported an improvement in the net advances during the March quarter (Q4FY21), according to provisional data released by the banks. While the largest private lender HDFC Bank has shown a 13.9% year-on-year (y-o-y) growth in the loan book, Federal Bank reported over 9% y-o-y growth in the advances. Similarly, IndusInd Bank has shown a 3% y-o-y increase in the net advances during the March quarter.

Although, Yes Bank has registered a meagre 0.8% y-o-y loan growth, its retail disbursements more than doubled to Rs 7,828 crore during Q4FY21. The provisional data also suggests a robust deposit growth for private lenders.

While Yes Bank’s deposits grew 54.7% y-o-y, IndusInd Bank registered a 27% deposit growth during the March quarter.

Similarly, HDFC Bank has shown a 16.3% y-o-y growth and Federal Bank showed a 13% growth in its deposit base.

The growth was supported by a strong current account savings account (CASA) deposits rise of 51.8% in Yes Bank, 27% growth in HDFC Bank and 26% in Federal Bank. In early March, rating agency Crisil said that in FY21, bank credit was seen rising 4-5%. This was a revision of the rating agency’s projection from June 2020, when they had expected the bank credit growth to be 0-1%.

In FY22, Crisil expects the bank credit to bounce back to 9-10% levels, driven by a pick-up in corporate credit, the government’s infrastructure push and a likely revival in demand. According to RBI’s latest bulletin, private banks clocked a credit growth of 8.6% y-o-y till February, 2021. The bulletin also mentioned that credit growth of scheduled commercial banks (SCBs) appears to have bottomed out as it grew at 6.6% y-o-y in February, 2021. Later, the non-food credit grew at 6.44% y-o-y for the fortnight ended March 12, 2021.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

IndusInd Bank Q4 deposits up 27 per cent, net advances rise 3 per cent

Banking & Finance

[ad_1]

Read More/Less


Private sector lender IndusInd Bank reported a 3 per cent increase in net advances and 27 per cent rise in deposits as on March 31, 2021, compared to a year ago.

According to a regulatory filing by the bank on Monday, its net advances increased to ₹2.13 lakh crore as on March 31, 2021, versus ₹2.06 lakh crore a year ago. Even sequentially, net advances increased by 3 per cent from ₹2.07 lakh crore as on December 31, 2020.

Deposits increased to ₹2.56 lakh crore as on March 31, 2021, compared to ₹2.02 lakh crore a year ago.

Moody’s affirms IndusInd Bank’s ratings, revises outlook to ‘stable’

“Retail deposits and deposits from small business customers amounted to ₹95,811 crore as of March 31, 2021, as compared to ₹85,914 crore as of December 31, 2020,” IndusInd Bank said.

On a sequential basis, deposits increased 7 per cent in the fourth quarter of last fiscal from ₹2.39 lakh crore as on December 31, 2020.

Why IndusInd Bank FD is an attractive short-term choice

The bank’s CASA ratio was at 41.8 per cent as on March 31, 2020, from 40.4 per cent a year ago.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

HDFC Bank Vs ICICI Bank…who is speeding up?, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


HDFC Bank suffered at least the fourth outage on Tuesday in the last three years as customers experienced downtime on their internet and mobile banking with services not accessible to them for several hours.

This led to an almost 4% drop in the bank’s shares in afternoon trade on Wednesday in a market, which saw across the board sell-off due to Covid worries. At the same time, the drop in ICICI Bank was just 2%.

While it has a lot of catching up to do, ICICI Bank is fast narrowing the gap with HDFC Bank and larger peers.

Why is ICICI Bank surging

Experts said the worst is behind ICICI Bank. It has gone through a period of tremendous amounts of credit cost related issues and write-offs taking place. Secondly, it is focusing more to be a retail bank which is contributing to growth. On top of it, ICICI was trading at a substantial discount in terms of its valuation to its larger peers. The discount is also narrowing down and has contributed to this outperformance.

ICICI Bank’s performance has now become comparable with HDFC Bank’s (industry best) and as comfort on asset quality/ credit-cost improves, this should translate into stable growth in net profits as well, experts said.

It has improved the velocity (pace and direction) of operating profit over the past two years reflecting improved topline and cost efficiencies. An improvement in velocity of ICICI Bank’s operating profit growth & steady credit cost will bring down volatility in earnings, which has been a key reason for a 55% discount in valuation versus HDFC Bank. Lower volatility can reduce Beta, which can bridge the valuation gap by half. The rest reflects the gap in growth & ROE – this can be partly bridged with improved growth in clients/ CASA. Brokerage Jefferies has raised its price target to Rs 780 and hold it among its top picks in the sector.

ICICI Bank versus HDFC Bank

ICICI Bank trades at 55% discount to HDFC Bank in terms of valuations – ICICI Bank at 1.9x FY22 adjusted PB and HDFC Bank at 3.4x. This reflects a combination of HDFC Bank’s better growth, ROE and lower Beta. With a lower volatility in earnings, HDFC Bank’s Beta is at 1 whereas ICICI’s is around 1.2-1.3. Brokerage Jefferies said that consistency in earnings growth/ asset quality will help ICICI Bank bring down Beta closer to 1. This can lift-up the theoretical PB from 1.9x now to 2.5x – closing the gap with HDFC Bank by 30%.

CASA deposits

ICICI Bank has seen steady growth in CASA deposits. During Q3, ICICI Banks saw average CASA growth of 19% YoY whereas HDFC Bank saw 30% YoY growth.

Jefferies sees an improvement in earnings and profitability from FY22 as credit costs stabilise alongside steady growth in topline. It has raised its price target on the bank to Rs 780 (from Rs 700) and target multiple to 2.4x Mar-23E adjusted PB.

At a valuation of Rs 1.7-1.8 lakh crore, ICICI Bank has a big branch network and stability and clean up that has been brought about in the business in the last three years under the new leadership, while HDFC has a market cap of close to about Rs 8 lakh crore.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Yes Bank won’t dilute equity soon, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Yes Bank will not be raising capital via equity soon and the recent board approval is only part of an enabling provision to reduce its time-to-market in future, the bank’s MD & CEO Prashant Kumar, said. He added that the bank’s deposits will cover its loan book by end-March despite growth in advances.

“We expect the credit-deposit ratio to be 100% by the end of March from 116% at the end of December,” Kumar said. He said that the bank’s strategy is to use its digital capability to grow retail deposits and loans. According to its December quarter results, the bank’s capital adequacy ratio is 19.6%, while common equity tier I capital is 13.1%, “We are well-capitalised but we decided to go through the process, which will also require a shareholder approval, so that we are in readiness,” said Kumar.

The private bank, which was revived by an RBI-initiated resolution process, had seen a third of its deposits being withdrawn by wary customers before the central bank placed a moratorium on withdrawals. Since then, deposits have bounced back growing 36% in the first nine months of the fiscal. The bank on Friday reported a profit of Rs 151 crore in the third quarter as against a loss of Rs 18,560 crore in the year-ago period.

The bank also said that it has received more information on accounts linked to whistleblower allegations. “All the loans are fully provided for and there will not be any financial implication even if any more loans are declared as fraud,” said Kumar. He said that Cox & Kings, which has been in the news for action by authorities, has already been declared a fraud.

The bank had earlier sought approval from the RBI for a ‘bad bank’ that will take over troubled loans and is awaiting a response from the regulator. While the bank has a Rs 1,000-crore exposure to DHFL, it does not expect any major recovery this year. “I do not expect the resolution will be implemented before March 31. Besides, we are unsecured lenders and don’t know how much we will get,” he said.

“Our focus is on retail and MSME. We have disbursed almost Rs 12,000 crore in the third quarter and this path would continue,” said Kumar. He said the bank was rationalising expenditure with operating expenses reduced by 13% and more branch mergers in the offing. The bank has already converted some of its rural branches into business correspondent centres. To augment fee-income, the bank has tied up with HDFC Life and SBI Life for distribution on the life insurance side and ICICI Lombard and SBI General on the non-life insurance side.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

Private banks report healthy deposit accretions, sluggish advances growth in Q3, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


MUMBAI: Small and mid-sized private sector banks have reported a healthy deposit growth in the third quarter, even as they have struggled to grow their loan books, as per exchange filings by three lenders. Despite interest rates being the lowest in over a decade, the pandemic and the resultant economic impact has ensured that loan demand is very low and the system’s credit growth is stuttering at about 6 per cent.

Expending income on deposits which do not fetch income through lending is a cost on banks.

Microlender-turned-universal bank Bandhan Bank was the only one which showed a surge in loan book, which grew 23 per cent on an annual basis to Rs 80,255 crore, while in case of IndusInd Bank and IDFC First Bank, the growth has been marginal, separate exchange filings showed.

IndusInd Bank had seen a shrinking of the loan book in the nine months to September. It increased the loan book by over Rs 6,000 crore during the December quarter to end slightly above the year-ago period’s Rs 2.07 lakh crore, while IDFC First Bank’s book grew by over Rs 3,000 crore during the quarter ended December 2020.

However, from a deposits perspective — it was a dip in deposits during the Yes Bank crisis which led banks to disclose the performance ahead of the quarterly results — there has been growth across the three lenders.

Bandhan Bank reported a 30 per cent increase in deposits compared to the year-ago period, IDFC First Bank’s deposits grew 41 per cent and IndusInd Bank witnessed 11 per cent growth during the quarter.

The share of the low cost current and savings account (CASA) deposits as on December 31, 2020 for IndusInd Bank was at 40.5 per cent, almost at par with the year-ago period, while Bandhan Bank witnessed a healthy rise of 43 per cent.

IDFC First Bank said its retail deposits (including both CASA and term deposits) registered a growth of 100 per cent on a year-on-year basis.

The IDFC First Bank scrip gained 4.16 per cent, Bandhan Bank corrected by 1.46 per cent and IndusInd Bank ended the session almost flat on the BSE on Wednesday, as against a 0.54 per cent dip in the benchmark.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,
1 2 3