Some of the private banks of the country recently released their quarterly provisional business statistics, revealing that a lot of small private banks have been able to garner more fresh deposits despite the COVID-19 pandemic. Though the credit demand saw a low from the new customers, the banks are trying to strengthen the portfolio ensuring cheaper deposits.
Taking the example of Yes Bank, the firm is trying to rebuild its customers’ loyalty and ensure that their business is rebuilt after they suffered huge losses in the last fiscal and had to bail out. The Yes Bank management on January 4 revealed that the bank has shown good progress and has witnessed 1.3 percent growth in their loans during the December quarter to Rs.1,69,050 crore from their initial Rs. 1,66,923 crore during the September quarter. The gross retail disbursements of the bank in the December quarter was at Rs. 7,563 crore, whereas in the September quarter it stood at Rs. 3,764 crore. Yes, Bank also made note of their credit-to-deposit ratio which was at 115.6 percent in the December quarter and 122.9 percent in the September quarter. Growth was also witnessed in the liquidity coverage ratio of the bank which stood at 115.5 percent in comparison to 107.3 percent during the last quarter. Overall, the bank’s deposits Q-o-Q basis showed a growth of 7.7% as compared to the year-ago quarter.
Against The Yes Bank, Kerala based CSB Bank recorded a Q-o-Q loan growth of 5.2% and Karur Vysya saw a growth of 9% during the quarter. Federal Bank witnessed a 2.3% growth in their loan books in the December quarter. Growth was also witnessed by these banks in their CASA deposits. Overall, The number of banks looked good and is a sign of good progress for all the private banks of the country.