HDFC Bank’s Deposit Base Grows Amid Erosion At RBL Bank, IndusInd Bank
HDFC Bank Ltd.'s deposits have risen at a time its private lending peers RBL Bank Ltd. and IndusInd Bank Ltd. witnessed an erosion.
In the March quarter of FY20, aggregate deposits at India’s largest private bank rose 7.41 percent sequentially to Rs 11.46 lakh crore. Its advances grew 6 percent quarter-on-quarter to Rs 9.93 lakh crore.
The lender purchased Rs 5,479 crore of loans from parent Housing Development Finance Corp. Ltd. during the quarter, according to an exchange filing.
Following the crisis at Yes Bank and the consequent moratorium and rescue, a section of private lenders—including RBL Bank and IndusInd Bank—have reported a fall in their deposit base. Depositors were anxious about the health of private sector lenders, and the ones with stressed balance sheets bore the brunt. The market downturn fuelled by the virus upheaval only added to their fears.
Many of the lenders have blamed pullouts by state governments or related-entities for the troubles. States like Maharashtra came out with an official resolution advising all government departments against banking with private sector lenders, despite RBI’s pleas on the contrary. So much so that RBI Governor Shaktikanta Das had to reiterate that the banking system is absolutely safe and urged all to not shun private lenders.