Public sector banks seem to have started FY25 on a strong note, clocking robust credit growth, going by provisional business updates of Bank of Maharashtra (BoM) and UCO Bank for the first quarter of FY25.

However, deposit growth of these banks continues to lag credit growth.

BoM has reported a 19.01 per cent year-on-year (yoy) growth in gross advances and 9.44 per cent yoy growth in total deposits in Q1FY25.

As on June-end 2024, the Pune-headquartered public sector bank’s gross loans stood at ₹2,09,065 crore (₹1,75,676 crore as on June-end 2023), per the bank’s provisional quarterly business update.

As on June-end 2024, its total deposits stood at ₹2,67,423 crore (₹2,44,365 crore).

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The share of low-cost current account, savings account (CASA) deposits declined to 49.86 per cent of total deposits as at June-end 2024 against 50.96 per cent as at June-end 2023.

The credit-deposit ratio (C-D) rose to 78.18 per cent as on June-end 2024 against 71.89 per cent as on June-end 2023. This ratio indicates how much a bank has lent for every ₹100 deposit it has raised.

UCO Bank

UCO Bank has reported a 17.78 per cent year-on-year (yoy) growth in gross advances and 7.39 per cent yoy growth in total deposits in Q1FY25.

As on June-end 2024, the Kolkata-headquartered public sector bank’s gross advances stood at ₹1.94 lakh crore (₹1.64 lakh crore as on June-end 2023), per the bank’s provisional quarterly business update.

Within gross advances, domestic advances were up 19.33 per cent yoy to ₹1.67-lakh crore as on June-end 2024 against ₹1.40-lakh crore as on June-end 2023.

As of June-end 2024, the bank’s total deposits stood at ₹2.68 lakh crore (₹2.50 lakh crore). Within total deposits, domestic deposits grew 5.87 per cent yoy to ₹2.55-lakh crore (₹2.41-lakh crore).

The share of low-cost domestic current account, savings account (CASA) deposits nudged up to 38.62 per cent of total deposits as at June-end 2024 against 38.10 per cent as at June-end 2023.

The credit-deposit ratio rose to 72.15 per cent as on June-end 2024 against 65.79 per cent as on June-end 2023.