HDFC Bank lends ~10,800 cr in Q1
HDFC Bank, the country’s largest private sector lender, has lent ~10,800 crore in the quarter ended June 2020, a period marked by lockdown and partial easing. It had disbursed ~10,100 crore in April-june 2019 (Q1FY20).
The bank’s advances expanded by 21 per cent year on year to approximately ~1,004,500 crore, as of June 30. The outstanding loans stood at ~829,700 crore as of June 30, 2019, and ~993,700 crore as of March 31, 2020.
During the first quarter of FY21, the bank purchased loans aggregating ~1,376 crore through direct assignment route under the home loan arrangement with Housing Development
Finance Corporation, according to a filing with BSE.
Rating agency CARE Ratings said the overall credit growth in the Indian banking sector has remained flat for the fortnight ended June 19. The credit growth has been nearly at half the level during the past two fortnights at 6.2 per cent, compared to last year’s level of 12 per cent (June 21, 2019) and 12.3 per cent (June 07, 2019).
The credit disbursal has been impacted by risk aversion in the banking system and weak demand. Though the lockdown was lifted on June 8, the metropolitan regions which accounts for about 63 per cent of bank credit are still not open completely, hence credit pickup is weak, CARE said.
Referring to rise in deposits, HDFC Bank said bank’s deposits rose by 25 per cent to approximately ~1,189,500 crore as of June 30, against ~954,600 crore as of June 30, 2019. The deposits were at ~1,147,500 crore at the end of March 2020.
The share of low cost deposits — current account and savings account (CASA) — in total deposits stood at around 40 per cent as of June 30, 2020, against 39.7 per cent as of June 30, 2019, and 42.2 per cent as of March 31, 2020, bank added.