Banks record a higher deposit growth rate in the second quarter of FY25 than in the first quarter of FY25

Banks reported stronger YoY deposit growth during the second quarter of FY25 compared to the first quarter of FY25, fuelled by efforts to raise liabilities through higher rates and innovative schemes. 4 out of 5 banks posted at least 2-3% higher growth than in the first quarter of FY25. Punjab National Bank, the second-largest public sector bank, recorded a 10.98% YoY deposit growth, up from 8.10% in the first quarter of FY25. CSB Bank registered a 25.17% YoY increase in deposits, compared to 22.24% in the first quarter of FY25, while South Indian Bank saw a rise of 8.6% YoY, up from 8%. Karur Vysya Bank posted a 15.37% YoY increase, compared to 14% in the first quarter of FY25. However, Yes Bank’s deposit growth moderated to 18.30% YoY in the second quarter of FY25 from 20.80% in the first quarter of FY25.

On the lending side, 3 out of 5 banks reported advances in growth in the second quarter of FY25. Yes Bank’s credit growth slowed to 13.10% YoY from 14.7% in the second quarter of FY25, while Punjab National Bank recorded 13% YoY growth in advances, up from 12% in the first quarter of FY25. CSB Bank’s advances rose by 19.6% YoY in the second quarter of FY25, compared to 17.7% in the first quarter of FY25. Punjab National Bank’s advances grew by 11.84% YoY, up from 11.60% in the first quarter of FY25. Meanwhile, Karur Vysya Bank saw its credit growth moderate to 13.98% YoY in the second quarter of FY25, down from 16% in the first quarter of FY25.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.