Banks report higher deposit growth in Q2 FY25, driven by higher rates | Banking
Banks recorded a higher growth year-on-year (Y-o-Y) in raising deposits during the second quarter of financial year 2025 (Q2FY25) compared to Q1FY25, owing to intensified efforts to raise liabilities by offering higher rates and innovative schemes.
Four out of five banks have recorded growth at least 2-3 per cent higher than the pace seen in the quarter ended June 2024.
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The second largest public sector bank- Punjab National Bank recorded 10.98 per cent Y-o-Y growth in deposits as against 8.10 per cent Y-o-Y growth in Q1FY25.
CSB Bank clocked 25.17 per cent Y-o-Y growth in deposits in Q2FY25 as compared to 22.24 per cent Y-o-Y rise in Q1FY25. Similarly, South Indian Bank’s deposits rose by 8.6 per cent Y-o-Y growth as compared to 8 per cent in the Q1FY25.
Karur Vysya Bank posted 15.37 per cent Y-o-Y rise in deposits as against 14 per cent Y-o-Y growth in Q1FY25.
However, the performance of Yes Bank was an exception as its growth in deposits moderated to 13.10 per cent Y-o-Y in Q2FY25 from 20.80 per cent Y-o-Y in Q1FY25.
On the credit side, four out of five lenders recorded a growth in advances.
Yes Bank posted 18.30 per cent Y-o-Y in Q2FY25 from 14.7 per cent Y-o-Y in Q1FY25. Punjab National Bank posted 13 per cent Y-o-Y in Q2FY25 from 12 per cent Y-o-Y growth in Q1FY25.
Meanwhile, CSB Bank posted 19.6 per cent Y-o-Y growth in advances in Q2FY25 as compared to 17.7 per cent Y-o-Y growth in Q1 FY25. State-owned Punjab National Bank’s advances rose by 11.84 per cent Y-o-Y in Q2FY25 as opposed to 11.60 per cent in Q1FY25.
On the other hand, Karur Vysya Bank’s credit growth moderated in Q2FY25 to 13.98 per cent Y-o-Y as opposed to 16 per cent Y-o-Y growth in Q1FY25.
First Published: Oct 03 2024 | 9:14 PM IST
