Bank of Baroda to UCO Bank: Loan growth of banks picks up pace in Q3

Meanwhile, Yes Bank reported a marginal contraction in deposits during the October-December period (Q3FY25) over the previous quarter

Bank of Baroda, a state-owned bank, in its quarterly update on Friday said its domestic deposits grew 9.23 per cent year-on-year (Y-o-Y) in October-December (Q3FY25) at Rs 11.65 trillion, while advances increased 11.76 per cent Y-o-Y at Rs 9.63 trillion, outpacing deposit growth during the period.

 

Domestic retail advances grew at a robust 19.5 per cent Y-o-Y to Rs 2.43 trillion.

 

Yes Bank reported a marginal contraction in deposits in Q3FY25 over the previous quarter but its advances grew over 4 per cent during the same period, according to the bank’s Q3 business update.

 

On a Y-o-Y basis, the bank’s deposits were up 14.6 per cent to Rs 2.77 trillion in Q3 while its advances grew 12.6 per cent to Rs 2.45 trillion during the same period.

   

The lender said its credit-deposit (CD) ratio has inched up to 88.4 per cent at the end of the December quarter from 84.8 per cent at the close of the September quarter. The ratio was 89.9 per cent in Q3FY24.

 

IDFC First Bank, another private lender, reported 28.8 per cent Y-o-Y growth in customer deposits to Rs 1.76 trillion in Q3FY25. On a sequential basis, its deposits grew 4.2 per cent. 

 

In deposits, its current account savings account (CASA) ratio increased 32.3 per cent Y-o-Y and 3.5 per cent sequentially to Rs 1.13 trillion. The CASA ratio of the bank stood at 47.8 per cent as of December 31, 2024, as against 46.8 per cent as of December 31, 2023, and 48.9 per cent as of September 30, 2024.

 

Advances of the lender grew 22 per cent Y-o-Y and 3.7 per cent sequentially to Rs 1.89 trillion in Q3FY25. Additionally, the bank said its CD ratio stood at 95.7 per cent as of December 31, 2024, as against 101.4 per cent as of December 31, 2023, and 97.7 per cent as of September 30, 2024.

 

“The bank has been bringing down the credit-deposit ratio continuously since the merger between IDFC Bank and Capital First in December 2018, by retiring legacy (pre-merger) bonds and borrowings and by scaling retail customer deposits. The Incremental Credit Deposit Ratio for trailing 12 months, i.e. from December 31, 2023 to December 31, 2024 is 76.6 per cent”, the bank said.

 

State-owned UCO Bank reported (domestic) advances growth of 18.83 per cent Y-o-Y and 5.17 per cent sequentially to Rs 1.83 trillion in Q3FY25 while its (domestic) deposits grew 7.29 per cent Y-o-Y and 0.38 per cent sequentially to Rs 2.65 trillion.

 

Moreover, Bank of India reported advances growth of around 15 per cent Y-o-Y to Rs 5.46 trillion and its advances grew 13.27 per cent Y-o-Y to Rs 6.78 trillion.

 

Kerala-based Dhanlaxmi Bank’s advances have grown by 10.3 per cent Y-o-Y to Rs 11,376 crore while its deposits have grown 5.07 per cent Y-o-Y to Rs 15,067 crore.