With the Reserve Bank of India (RBI) mandating banks to maintain an incremental CRR of 110% of net demand and time liabilities and the resulting squeeze on liquidity, CD issues once again increased. Moreover, deposit growth at 13.2% is still lagging behind credit growth, which was 14.2% as of August.
The Jammu and Kashmir Bank's stock has been bullish in recent years, particularly since the 2014 share-split era. The bank's impressive performance is driven by historically high profits, notably a substantial leap from a Rs 1139.41 crore loss in 2019-20 to a Rs 1197 crore profit in 2022-23. This success is indicative of the broader banking sector's health, as the bank historically sets the tone for financial operations in the region. While overall financial inclusion is better in Jammu and Kashmir compared to other states, deposit growth remains modest, with slight declines in some districts. Advances have seen notable growth, especially in corporate lending and personal loans. Notably, the bank's performance is crucial for the region's economy, with credit appetite varying across districts and regions. Despite challenges in priority sector lending, the banking sector's robustness in non-priority lending contributes significantly. Non-performing assets (N
Over the past few months, deposit growth has been half of credit growth, and many lenders have had to hike rates to attract depositors. Credit growth increased 19.7 per cent during the fortnight, driven by the merger between HDFC and HDFC Bank, the report said, adding that it would have been 14.8 per cent if not for the USD 40 billion-amalgamation.
Credit growth was healthy in Q1, but deposit growth was relatively modest. With deposit re-pricing catching up, the NIM reversal trend would continue to play out for banks.
State-owned Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in loan and deposit growth in percentage terms during the first quarter of the current financial year. The deposit and advances of the Pune-based lender recorded nearly 25 per cent rise, the highest by any public sector bank during the April-June quarter.