Banks Report Stronger Deposit and Loan Growth in Q2FY25, Yes Bank Leads in Advances

Banks saw higher year-on-year (Y-o-Y) growth in raising deposits during the second quarter of FY25 (Q2FY25) compared to the first quarter (Q1FY25), thanks to efforts to attract more deposits by offering higher interest rates and new schemes. 4 out of 5 banks experienced a 2-3% faster growth rate compared to the quarter ending June 2024.

Punjab National Bank, the second-largest public sector bank, recorded a 10.98% Y-o-Y growth in deposits in Q2FY25, up from 8.10% in Q1FY25. CSB Bank saw a 25.17% Y-o-Y increase, improving from 22.24% in Q1FY25. South Indian Bank’s deposits grew by 8.6% Y-o-Y, slightly up from 8% in Q1FY25.

Karur Vysya Bank posted a 15.37% Y-o-Y growth in deposits, up from 14% in the previous quarter. However, Yes Bank was an exception, with deposit growth slowing to 13.10% Y-o-Y in Q2FY25 from 20.80% in Q1FY25.

On the lending side, 4 out of 5 banks saw growth in their advances. Yes Bank recorded an 18.30% year-on-year (Y-o-Y) growth in Q2FY25, up from 14.7% in Q1FY25. Punjab National Bank’s advances grew by 13% Y-o-Y in Q2FY25, slightly up from 12% in Q1FY25.

CSB Bank showed a 19.6% Y-o-Y rise in advances in Q2FY25, improving from 17.7% in Q1FY25. State-owned Punjab National Bank also saw its advances increase by 11.84% Y-o-Y in Q2FY25, compared to 11.60% in the previous quarter.

However, Karur Vysya Bank’s credit growth slowed down to 13.98% Y-o-Y in Q2FY25, down from 16% Y-o-Y in Q1FY25.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.