Five banks post healthy y-o-y growth in advances

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Bank of Maharashtra (BoM), Federal Bank, CSB Bank, Karur Vysya Bank and Dhanlaxmi Bank posted good year-on-year growth in advances and deposits in the first quarter of FY24, according to their business updates.

The first quarter of a fiscal year is typically lean in terms of business for banks. But banks appear to be bucking the trend in FY24 in the wake of higher deposit rates, inflows of $2,000 notes, which are being taken down by the Reserve Bank of India, and loan demand from the retail and primary sectors, among others.

Deposits and advances

BoM deposits as well as advances increased by about 25 per cent annually each to ₹2,44,364 crores and ₹1,75,603 crores, respectively, as of the end of June 2023, according to the regulatory filing.

Fed deposits plus advances increased by about 21 per cent year on year each at ₹2,22,513 crore and ₹1,86,593 crore, respectively.

Karur Vysya Bank’s deposits as well as advances rose by about 14 per cent year-on-year each to Rs.80,715 crore and Rs.67,105 crore respectively.

Deposits of CSB Bank increased by 21 per cent YoY to Rs.24,476 crore and Advances increased by 30 per cent YoY to Rs.21,307 crore.

Dhanlaxmi Bank deposits increased by 6 per cent YoY to Rs 13,374 crore and advances increased by 15 per cent YoY to Rs 10,044 crore.