Mumbai: In a quarter of otherwise stable financials, HDFC Bank Ltd.’s asset quality put a dampener on its earnings with non-performing assets rising, owing to an increase in agriculture loan slippages. The country’s largest private sector lender attributed this deterioration in loan quality to cyclical impact of the agriculture segment and said that the bank’s…
The gap between fresh deposits and non-food credit widened to over ₹2 trillion in 2024, higher than ₹1.3 trillion in the previous year. Non-food credit is bank credit adjusted for loans given to the Food Corporation of India (FCI). In 2022, per RBI data, banks added more loans than deposits and the gap between the…
The credit-deposit (CD) ratio, a critical measure of banking stability, is under mounting pressure as household savings are increasingly diverted from traditional bank deposits to mutual funds, stocks and other investment avenues. As of 12 July 2024, the CD ratio stood at 79.4%, reflecting a steady rise over the past three years. This trend poses…
Mumbai: The government needs to explore options such as tax benefits to encourage individuals to keep more money in bank deposits, said Ashwini Kumar Tewari, managing director of State Bank of India, adding to the chorus on India’s worst deposit crunch in two decades. “We have to think through various things, what are the options….
Mumbai: In an effort to bring down its credit-deposit ratio to pre-merger levels and pursue profitable growth, HDFC Bank will grow its advances a “little slower” than deposits and avoid pursuing growth which does not meet the risk-adjusted profitability thresholds, according to MD and CEO Sashidhar Jagdishan. “Our focus would be to maintain adequate liquidity…
