In Q4, private banks post robust credit growth; deposits, too, pick up pace

Table of Contents

• Credit and Deposit Growth Overview
• Credit Growth Analysis
• Deposit Growth Analysis
• Outlook for Private Banks

Credit and Deposit Growth Overview

In the last quarter of FY24, private banks in India experienced robust credit growth, maintaining a steady rate of 15-25%. This growth trend was accompanied by a significant increase in deposit growth, addressing concerns about loan-to-deposit ratios.

Credit Growth Analysis

Most banks showcased sequential credit growth of 3-11% during Q4, with notable performers like HDFC Bank posting a substantial on-year loan growth of 55.4%. L&T Finance, M&M Financial Services, and Poonawalla Fincorp also reported strong credit growth figures.

Deposit Growth Analysis

Deposits across banks witnessed a healthy upward trajectory, with sequential growth ranging from 4-15% in Q4. HDFC Bank’s deposits rose by 26.4% on a yearly basis, indicating a positive trend in deposit mobilization.

Outlook for Private Banks

Looking ahead, private banks are expected to maintain their focus on enhancing both credit and deposit growth, with initiatives aimed at strengthening their market positioning and addressing liquidity requirements effectively.