HOME > BUSINESS > SBI biggest beneficiary of demonetization, HDFC Bank close behind

SBI biggest beneficiary of demonetization, HDFC Bank close behind


State Bank of India and HDFC Bank were the most successful in attracting and retaining deposits in the wake of demonetization of currency, according to an analysis of their deposits growth so far this financial year.

The highest growth was reported by State Bank of India, which added a massive Rs 3.15 lakh cr of deposits as of Dec 31 when compared to Apr 1, the first day of the financial year.

The growth in deposits at SBI was a massive 19.3% in the nine months.

As of Dec 31, the total deposits at the bank had risen to 19.52 lakh cr, which was about 26% of the total money held by all public sector banks in India at the time. The number does not include the share of associates such as State Bank of Travancore, which are in the process of being merged with SBI.

The second biggest beneficiary of demonetization was HDFC Bank, which saw its deposits jump 16.6% as of Dec 31, when compared with the corresponding number of Apr 1.

Against the Rs 3.15 lakh cr added by SBI, HDFC Bank added a more modest Rs 89,402 cr. It’s total deposits at the end of 2016 stood at Rs 6.29 lakh cr, or about a third of SBI’s. HDFC Bank too accounted for 26% of the total deposits in all private sector banks in India at the time.

With almost 64,000 cr, Punjab National Bank was the only one to report deposit additions of over Rs 50,000 cr in the three quarters of the financial year. Bank of India added 48,317 cr, growing 12.8%, while ICICI Bank added 46,967 cr, growing 11.4%.

Axis Bank had a relatively poor performance, and added just 13,666 cr and reported a growth of only 3.9%.

The highest growth rate among established banks was reported by IndusInd bank, a part of the Hinduja Group. It added Rs 26,218 cr and reported a growth of 28%.

The worst performer was Indian Overseas Bank, which saw a decline of Rs 14,312 cr — 6.6% — during the nine months.

Follow ULTRA.news
XL Catlin to buy 20% of Mahindra Insurance Brokers Mahindra Finance said global insurance major XL Group will take a 20% stake in its subsidiary Mahindra Insurance Brokers Ltd, including the 15% currently held by LeapFrog Financial Inclusion Fund."XL Group will help support MIBL’s endeavours to increase insurance awareness a...
Karnataka Bank NII up 11%, PAT down Karnataka Bank's second quarter net profit fell to Rs 93.38 crores from 123.82 crores last year.However the operating profit showed a robust growth of 57.35% and improved to Rs 366.24 cr from Rs 232.75 cr.The Net Interest Income rose to 440 cr from 397 cr last year.G...
Tata Teleservices to merge mobile business with Bharti Airtel Bharti Airtel Limited, India’s largest telecommunications services provider and Tata, India’s leading conglomerate, today announced that they have entered into an understanding to merge Consumer Mobile Businesses (CMB) of TTSL and TTML into Bharti Airtel.The move is likely ...
Tata Teleservices says all options on table; no final decision, denies reports Tata Teleservices Maharashtra, the listed unit of TTSL, said it had not taken any "firm decision" on how to go forward, reacting to a news article in the Business Standard that said the company will shut down this month.Reacting to media reports, the company said it "continu...
Bank of Baroda slashes lending rates by 35 bps Bank of Baroda, one of the largest banks in India, has slashed the base rate and benchmark prime lending rates in keeping with the decline in inflation and loan demand.The company slashed the base rate to 9.15% from 9.5% with effect from Oct 1.Base rate is the minimum ra...
Nucleus Software wins loan software order from Finova Capital NBFC Nucleus Software, which provides IT solutions for financial services companies, said its loan management solution has been selected by Finova Capital, a Jaipur-based Non-Banking Financial Company (NBFC) to digitise its lending business.Founded in 2015, Finova Capital offers ...
Piramal Enterprises enters the retail housing finance business Piramal Finance Limited (PFL) has entered the retail housing finance business.It is part of $1.3 bln Piramal Enterprises, one of India’s large diversified companies, with presence in pharmaceuticals, and financial services.The housing finance venture has been floated thro...
IndusInd Bank enters merger talks with SKS Microfinance Bharat Financial Inclusion, formerly known as SKS Microfinance, said it has entered into exclusive discussion with IndusInd Bank on a potential "strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure."SKS Microfinance is...
SBI warns against fraudsters luring customers with fake deposit schemes India's biggest bank, State Bank of India, has been forced to issue warning letters to its customers after fraudsters targeted the banks' customers with fake schemes and offers.An email message has been sent to customers warning them against depositing money on the advice of...
NDTV stock up 76% in four days, company says no clue why Shares of New Delhi Television Ltd spiked another 10% today to Rs 62.40, prompting the BSE to write to the company to seek clarification on any undisclosed development.With this, the total gain in NDTV shares in the last four days is 76%.The company, however, said it was...
Paypal to invest in and support five more Indian start-ups Online payment company PayPal has selected five startups – Finbox, Neoeyed, Paymatrix, Scalend and Tybo - for inclusion into its incubator program in Chennai.The program offers startups technology counsel and mentorship, infrastructure support and networking opportunities w...
UPDATE: 99% of demonetized currency returned to govt Eight months on, the Reserve Bank of India is yet to finish verifying and counting the 500- and 1000-rupee notes surrendered by the public between Nov 8 and Dec 30, 2016, the finance ministry said in a statement on Aug 11.UPDATE: About ten days after this article was publishe...
Expecting waivers, farmers stop paying back bank loans? The write-off of farm loans in Uttar Pradesh and Maharashtra seems to be encouraging farmers in other states to stop paying back their farm loans to make sure that they will get the benefits of any farm loan waiver program in their state. This has led to a sharp increase in farm ...
SBI, IOB and Corp Bank only PSBs to charge for mobile NEFT Only three public sector banks -- State Bank of India, Indian Overseas Bank and Corporation Bank -- levy charges on even the smallest money transfer done via mobile phones using the National Electronic Fund Transfer or NEFT facility, data compiled from public sector banks show. ...
India bitcoin law not ready yet – Finance Ministry Finance Minister Arun Jaitley said there was no law on the use of bitcoin and similar crypto currencies in India, and users of such currencies may not get recourse to legal remedies for any damage.However, Jaitely added that the government has set up a committee that is expec...
SBI enables Samsung Pay for some of its debit cards State Bank of India said it was enabling payment by Samsung Pay service on some of its higher debit card variants.Samsung Pay works by mimicking the 'swiping' action of a credit or debit card by sending a magnetic pulse. The 'card machine' or point of sale machine mistakes th...
Demonetization took India forward by 3 years – SBI The demonetization of currency notes late last year has doubled the number of card transactions and helped push India's payment digitisation by three years, State Bank of India said in a note."Even after seven months post demonetization, the transaction value is quite large ...
SBI clears SB Life IPO, to sell 80 mln shares State Bank of India said it had decided to conduct an initial public offer for some of its shares in its insurance subsidiary SB Life Insurance. BNP Paribas Cardif S.A. would also sell some of its shares in the offer.It said the offer would involve 8 crore shares.No valua...
RCom says telcos facing cash flow issues due to ‘go slow’ approach by banks Telecom operator Reliance Communications said companies in the sector are facing cash flow issues due to what it called a 'go slow' approach taken by banks in disbursing loans.In an update on its 'standstill agreement' with its lenders, which provides it a window of seven mon...
Farm loan wavers can impact India’s financial profile – Fitch Ratings agency Fitch said the string of farm loan waivers announced by various Indian states could impact the financial profile of the country as a whole.The agency, however, did not directly say that the moves could lead to a downgrade in India's credit rating, which would i...
Axis Bank says 8 NPA accounts fingered by RBI owes it Rs 5,283 cr Axis Bank said eight of the 12 big defaulters highlighted by the Reserve Bank of India in its June 15 circular owed over Rs 5,000 cr to the bank.The RBI had given a list of 12 large accounts which together owed about 25% of the total bad loans of Indian banks. The total bad l...
Axis Bank confirms exiting POS maker Mswipe Axis Bank confirmed it had sold its 8% share in new-generation card-swiping-machine company Mswipe Technologies.In a regulatory filing, the private sector bank said it sold its 8% stake for Rs 80.94 cr, or Rs 4,249 per share.Mswipe is one of the new generation, low-cost ...
SBI raises Rs 15,000 cr in India’s largest QIP State Bank of India said it raised Rs 15,000 cr by selling its shares in a 'qualified institutional placement' or QIP, making it the largest such transaction in Indian share market history.QIP's usually involve selling shares exclusively to big institutions such as mutual fun...
SBI opens QIP at floor price of Rs 287.58 State Bank of India said its committee of directors for capital raising has decided to start receiving bids a qualified institutional placement of its shares with a floor price of Rs 287.58 per equity share."The Bank may offer a discount of not more than 5% to the Floor Pric...
RCom formally assures lenders it will pay Rs 25,000 cr in four months Anil Ambani Group's telecom arm Reliance Communications said it has 'formally' communicated to its lenders that it will pay an amount of Rs 25,000 cr to them on or before Sept 30.The latest statement from the telecom operator comes as a way of reassuring investors and lenders...