While secured loans are likely to dominate the co-lending business mix, there may be a decrease in the volume of business, with banks potentially reducing their exposure to certain products including personal loans.
According to data from the Reserve Bank of India (RBI), the year-on-year growth in loans against gold jewellery offered by banks has dipped to 15% in February from its peak of 26% in June 2023.
HDFC Bank Q4 Result Preview: HDFC Bank likely to post strong YoY net profit growth for March 2024 quarter, supported by treasury income gains. Earnings release is expected to reveal increased net interest income, deposit mobilization focus, and stable asset quality. Asset quality for the merged entity is expected to remain broadly stable.
HDFC Bank, IDFC First Bank, and some small finance banks, have seen their CD ratios exceed 100%, surpassing the industry average of 80%.
Banks will also gain from mark-to-market gains from the easing in treasury yields last quarter and also from a Reserve Bank of India (RBI) relief on provisioning requirements on their alternative investment fund (AIF) investments.
ICICI Bank, Bank of Baroda may yield 15% return. Strong credit growth from retail, business, corporate sectors. While credit growth has been robust, deposit growth too has gathered pace on the back of aggressive competition, a push for deposits, and competitive TD rates offered by banks. As a result, the gap between credit and deposits narrowed to ~3.4% in Mar’24.
ICICI Bank, Bank of Baroda may yield 15% return. Strong credit growth from retail, business, corporate sectors. While credit growth has been robust, deposit growth too has gathered pace on the back of aggressive competition, a push for deposits, and competitive TD rates offered by banks. As a result, the gap between credit and deposits narrowed to ~3.4% in Mar’24.
During the quarter, it said, Current Account and Savings Account (CASA) declined to 52.73 per cent of the total deposits as against 53.39 per cent. The Credit Deposit (CD) ratio increased to 75.23 per cent at the end of March 31, 2024 as against 74.87 per cent in the year-ago period.
IndusInd Bank's advances grew by 18% to Rs 3,42,857 crore with a 14% increase in deposits. Meanwhile, Suryoday Small Finance Bank reported a 41% rise in gross advances, reaching Rs 8,650 crore.
The rating agency expects system-level credit growth to moderate to 14% in FY25, starting April 1, from about 16% annual growth in the first three quarters of FY24, with margins also set to fall.
The Reserve Bank of India's move to raise the risk on unsecured loans impacted RBL Bank's capital adequacy ratio by 70 points, Subramaniakumar said. The lender is aiming to grow its credit card book around 23-25% going forward, from 29% in the October-December quarter, he added. Read on to know more:
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