The business momentum for some of the private lenders in Q2FY22 is expected to be quite healthy.
Deposit growth is looking strong for some of these banks, almost 4.5 percent for HDFC Bank on a quarter-on-quarter basis (QoQ), and around 8.2 percent QoQ for Yes Bank, which shows that customers are putting their faith in private lenders.
The loan growth for HDFC Bank is 45.6 percent QoQ, while for Yes Bank it is 5.7 percent QoQ. So, loan growth momentum has picked up for private lenders, which means that they are back to gaining market share.
Retail depositors have also shown more inclination towards CASA or low-cost deposit, which has improved for HDFC Bank to about 14.4 percent versus 4.5 percent. For Federal Bank also, it's at 25-quarter high in terms of low-cost deposit share at 36.2 percent. Yes Bank has also gained a handsome 300-350 basis points on the low-cost deposit ratio, which is now at 29.5 percent.
More banks like AU Small Finance, IndusInd Bank and RBL Bank are expected to report provisional numbers.