Page 6 - Banking Finance November 2024

BANK UPDATE

The bank has also introduced a tax on a year-on- year (YoY) basis. And, India's economy, forecasting a 7 per
saver deposit scheme for five years gross advances stood at Rs 25.19 tril- cent increase in gross domestic prod-
offering a 7% rate whereas normal lion, up 7 per cent YoY. uct (GDP) for the financial year 2024
deposits over five year carry 5.85%. "HDFC Bank, in its Q2FY25 pre-quarter (ending 31 March 2025) and 7.2 per
Seniors will get 7.5% for the tax sav- update, reported deposit growth that cent for FY2025. The projections were
ing scheme. was higher than our estimates, at 5 per outlined in the bank's Asian Develop-

cent quarter-on-quarter (Q-o-Q), a net ment Outlook report for September
SBI add 600 branches this sequential increase of Rs 1.2 trillion ver- 2024.
fiscal: Chairman sus our expectations of Rs 80,000 crore. Mio Oka, ADB Country Director for
This was driven by strong growth in term India, said, "India's economy has
State Bank of India (SBI) is planning to
deposits, up 6.7 per cent Q-o-Q", said shown remarkable resilience in the
open 600 branches across the country Macquarie Research in a report.
in the current financial year in a bid to face of global geopolitical challenges
"If one assumes a Rs 1.2 trillion deposit and is poised for steady growth. Agri-
tap business opportunities in emerging
accretion in Q3, followed by Rs 1.6 tril- cultural improvements will enhance
areas including large residential town-
ships. "We have strong branch expan- lion in Q4, the numbers imply a 17 per rural spending, which will complement
cent Y-o-Y deposit growth, which would the effects of robust performance of
sion plans...this would be mainly fo-
cused on emerging areas. A lot of resi- be a good outcome compared to our the industry and services sectors."
dential colonies are not covered by us. system deposit growth expectation of The report indicates that above-aver-
Around 600 branches is something we 11 per cent. Deposit growth on a Y-o- age monsoon across much of India is
are planning in the current year," SBI Y basis was around 15 per cent com- expected to stimulate strong agricul-
Chairman C S Setty told in an interview. pared to current system deposit tural growth, positively impacting the
growth of 11.5 per cent," it said.
The country's biggest lender opened rural economy in FY2024. The ADB
137 branches last fiscal. Of the total, ADB retains India's growth maintains a positive outlook for the
59 new rural branches were inaugu- industrial and services sectors, along
rated. SBI has a network of 22,542 forecast at 7% with private investments and urban
branches across the country as of The Asian Development Bank (ADB) consumption for both FY2024 and
March 2024. projects sustained strong growth for FY2025. Furthermore, a new govern-

HDFC Bank mobilises Rs. IDFC First Bank completes IDFC Ltd. merger
1.2 trillion in deposits in IDFC First Bank announced the completion of merger of IDFC Limited with
the bank. This follows the receipt of all requisite shareholder and regula-
Q2 tory approvals, the bank said in a statement. The merger is effective from
HDFC Bank, country's largest private October 1, 2024, it added.
sector lender, has mobilised over Rs
1.2 trillion in deposits in the quarter As a result of the merger, it said, 155 equity shares of the bank will be allot-
ending September 2024 (Q2FY25), ac- ted for every 100 equity shares of IDFC Limited held by such shareholder in
cording to the bank's exchange filing. IDFC Limited as on the Record Date i.e., October 10, 2024. The shares are
expected to be credited to shareholders of IDFC Limited on or before Octo-
According to the bank's quarterly up- ber 31, 2024, subject to regulatory processes and clearances, it said.
date, deposits growth in the second
"The shareholding structure will be like other leading institutional Indian
quarter of the financial year (Q2 FY25)
private sector banks with no promoter holding. The bank will continue to
outpaced that in credit on a sequen-
be professionally managed institution," it said. As part of the merger, it said,
tial basis. Deposits grew by 5.1 per
cent and gross advances by 1.3 per about Rs 600 crore of cash and cash equivalents will flow to the bank.
cent compared to Q1. Speaking about the merger, V Vaidyanathan, MD & CEO, IDFC FIRST Bank
Limited, said: "The announcement of merger between IDFC First bank and
The bank's deposit base in Q2FY25
stood at Rs 25 trillion, up 15.1 per cent IDFC Ltd brings closure to the intense work over the last 2 years.

6 | 2024 | NOVEMBER | BANKING FINANCE