Deposits rise faster than loans at SFBs in Q2

SMALL FINANCE BANKS (SFBs) saw higher growth in their deposits as compared to gross advances on a year-on-year basis in the quarter ended September, provisional data released by six banks showed.

- KSHIPRA PETKAR

The gross advances rose 16.8% yo-y while the growth in total deposits was higher at 17.2%, the average of estimates of six small finance banks showed.

However, on a sequential basis, the growth in loans was higher as compared to the deposits, data showed. This was largely on the back of growth in the retail and micro, small and medium enterprise segments.

AU Small Finance Bank expects a 22.4% yo-y growth in gross advances to ¢1.17 lakh crore as on September 30, according to provisional figures. Deposits are expected to rise by nearly 21%.

Suryoday Small Finance Bank’s gross advances are expected torise by 23% onyear, while deposits are seen rising muchhigherat 35%,with CASA deposits growing nearly 57%. Thesmall finance bank reduced its bulk deposits by 4% on year and 20% on quarter, while the growthin retail deposits rose by 45% on year and 12% ona sequential basis.