Strong loan growth for small finance banks in Q1FY25, Casa declines
Small finance banks (SFBs) posted healthy loan growth in the first quarter of the current financial year (FY25) compared to the corresponding year-ago quarter.
The current and savings account (Casa) of SFBs continued to be under pressure sequentially, even as overall deposits clocked growth, both sequentially and year-on-year basis.
Equitas SFB reported 17.80 per cent growth in advances during the April-June FY25 period to Rs 29,601 crore, while Capital SFB clocked 16 per cent growth to Rs 6,391 crore. Suryoday SFB’s advances grew by 46 per cent to Rs 9,037 crore. On a sequential basis, the advances of Equitas SFB grew by 1.6 per cent, Suryoday SFB by 4 per cent, and Capital SFB by 3.75 per cent.
The deposits of the SFBs posted a double-digit increase from the quarter ended in June 2024. Deposits of Equitas SFB grew by 35.40 per cent, Capital SFB by 10 per cent, and Suryoday SFB by 42 per cent. Sequentially, deposits of Suryoday SFB rose 5 per cent, Equitas SFB by 3.9 per cent from Q4FY24.
“Deposit growth was mainly led by (term deposits) TD, but the acquisition of granular Casa was limited, resulting in a decrease in Casa ratio,” Suryoday SFB said in its exchange filing.
The ratio of current and savings account deposits to the total deposits of Suryoday SFB fell to 17.70 per cent in the reported quarter from 20.10 per cent in Q4FY24, whereas, Equitas SFB’s deposits dropped marginally to 31 per cent from 32 per cent. The credit-to-deposit (CD) ratio of Capital SFB dipped to 79.6 per cent in the quarter ended in June 2024 from 82.2 per cent in the June 2023 quarter.
First Published: Jul 04 2024 | 7:41 PM IST