Latest news with #RohanMandora
Time of India
5 days ago
- Business
- Time of India
Deposits outpace loans at HDFC Bank, a positive indicator: Analysts
MUMBAI: Persistently robust growth in deposits ahead of credit disbursements, analysts believe, will likely help HDFC Bank match the pace of business expansion for the broader banking industry this fiscal after the merger with HDFC left the country's most valued lender a relative straggler for a couple of years. Provisional business data released by HDFC Bank on Friday showed that gross advances at the end of the first quarter ended June increased 7% to Rs 26.53 lakh crore, from Rs 24.86 lakh crore a year earlier. Loan growth is still slower than the system-level growth of above 9%. But the bank's year-on-year deposit growth at 16% outpaced its credit growth for the third successive quarter, indicating a return to normalcy. Total deposits at the end of June stood at Rs 27.64 lakh crore up 16% over the Rs 23.79 lakh crore a year ago and at more than double the rate of credit growth. This is a change from the fiscal year ended March 2024, post the acquisition of its parent in July 2023, when advances grew at 54% outstripped deposits growth of 26%, exposing the bank to an asset-liability mismatch. Analysts say those concerns have now abated. Rohan Mandora , analyst at Equirus Securities , said while the bank is still some distance away from the historical growth rates of 1.5 times the broader banking industry, one can expect it to match system-level growth starting this fiscal year and have a better hold on its margins. "HDFC Bank has been aggressive in cutting term deposit rates in the first quarter and has brought it in line with large private peers. Additionally, quarterly average CASA (current and savings accounts) growth has been much better in the first quarter. We thus believe that improvement in the incremental cost of funds for HDFC would be better than peers. They additionally have levers on loan mix/ liability mix change. We expect HDFC to have lower NIM (net interest margin) compression than larger private banks," Mandora said in a note. HDFC Bank's average CASA deposits were Rs 8.60 lakh crore at the end of June 2025, up 6% over Rs 8.10 lakh crore a year ago. Total CASA deposits increased 9% to Rs 9.37 lakh crore as of June 2025, but were lower by around 1% compared to the Rs 9.44 lakh crore reported at the end of March 2025. Total term deposits at Rs 18.27 lakh crore at the end of June 2025 were up 21%.
Business Recorder
22-04-2025
- Business
- Business Recorder
Indian benchmarks may open flat; banks in focus after RBI's liquidity boost
Indian stocks are set to open little changed on Tuesday as the domestic central bank's liquidity-enhancing measures are seen offsetting weak global sentiments following U.S. President Donald Trump's unrelenting attack on the Federal Reserve. Gift Nifty futures were trading at 24,164 as of 8:08 a.m. IST, indicating a flat start for the Nifty 50 compared with Monday's close of 24,125.55. The Reserve Bank of India (RBI) directed lenders to assign a lower-than-proposed buffer rate of 2.5% on digitally linked deposits, with a one-year compliance deadline, marking the latest in its ongoing regulatory easing. 'Our back of the envelope calculations indicate a ~2.5 trillion ($29.3 billion) to 3 trillion rupees increase in liquidity deployable, which implies a 1.4%-1.6% potential increase in credit growth for the banking system,' Macquarie said. Bank stocks have led the benchmarks higher in the last five trading sessions on better-than-expected earnings from HDFC Bank and ICICI Bank, prospects of margin improvement after deposit rate cut and buying by foreign portfolio investors (FPIs). Indian benchmarks log biggest five-day gains in four years as financials rally 'While valuations (of banking stocks) have expanded in the wake of the rally, they remain meaningfully below historical peak multiples, indicating limited signs of froth,' said Rohan Mandora, analyst at Equirus Securities. FPIs bought Indian shares worth 19.7 billion rupees on Monday, as per provisional data, marking the fourth consecutive session of buying. A softening dollar, which reduces India's import costs and makes emerging market equities attractive for FPIs, helped attract foreign flows to India. The dollar languished near its three-year low as U.S. President Donald Trump's attacks on Federal Reserve Chair Jerome Powell eroded investor confidence in the world's largest economy. Asian markets traded mixed after a furious flight from U.S. assets amid concerns over the Fed's independence of the Federal Reserve undermined Wall Street and the dollar.
Reuters
22-04-2025
- Business
- Reuters
Indian benchmarks may open flat; banks in focus after RBI's liquidity boost
April 22 (Reuters) - Indian stocks are set to open little changed on Tuesday as the domestic central bank's liquidity-enhancing measures are seen offsetting weak global sentiments following U.S. President Donald Trump's unrelenting attack on the Federal Reserve. Gift Nifty futures were trading at 24,164 as of 8:08 a.m. IST, indicating a flat start for the Nifty 50 (.NSEI), opens new tab compared with Monday's close of 24,125.55. The Reserve Bank of India (RBI) directed lenders to assign a lower-than-proposed buffer rate of 2.5% on digitally linked deposits, with a one-year compliance deadline, marking the latest in its ongoing regulatory easing. "Our back of the envelope calculations indicate a ~2.5 trillion ($29.3 billion) to 3 trillion rupees increase in liquidity deployable, which implies a 1.4%-1.6% potential increase in credit growth for the banking system," Macquarie said. Bank stocks have led the benchmarks higher in the last five trading sessions on better-than-expected earnings from HDFC Bank ( opens new tab and ICICI Bank ( opens new tab, prospects of margin improvement after deposit rate cut and buying by foreign portfolio investors (FPIs). "While valuations (of banking stocks) have expanded in the wake of the rally, they remain meaningfully below historical peak multiples, indicating limited signs of froth," said Rohan Mandora, analyst at Equirus Securities. FPIs bought Indian shares worth 19.7 billion rupees on Monday, as per provisional data, marking the fourth consecutive session of buying. A softening dollar, which reduces India's import costs and makes emerging market equities attractive for FPIs, helped attract foreign flows to India. The dollar languished near its three-year low as U.S. President Donald Trump's attacks on Federal Reserve Chair Jerome Powell eroded investor confidence in the world's largest economy. Asian markets traded mixed after a furious flight from U.S. assets amid concerns over the Fed's independence of the Federal Reserve undermined Wall Street and the dollar. STOCKS TO WATCH ** Coal India ( opens new tab to build a 1,600-megawatt coal-powered plant through a joint venture in the eastern state of Jharkhand at an investment of 165 billion rupees ** Tata Power's ( opens new tab arm partners with Tata Motors ( opens new tab to develop 131-megawatt wind-solar hybrid project ($1 = 85.2100 Indian rupees)
