RBI’s Deposit Push: HDFC Bank Outpaces SBI in Deposit Race

As the Reserve Bank of India encourages banks to enhance their credit-to-deposit ratios, deposit competition is intensifying. Public Sector Banks (PSBs) may have the largest branch networks in India, but their ability to attract deposits falls short of that of their private sector counterparts.

Despite having a branch network three times larger than HDFC Bank, the largest Indian private sector lender, State Bank of India (SBI) has a smaller deposit base. At the end of June 2024, SBI’s total deposits stood at ₹49.01 lakh crore, having added ₹3.70 lakh crore in the past year.

HDFC Bank, on the other hand, has demonstrated exceptional deposit-gathering capabilities. The bank added a substantial ₹ 4.66 lakh crore to its deposit base in just one year, reaching a total of ₹23.79 lakh crore. This impressive growth was achieved with a branch network of 8,851, significantly smaller than SBI’s.

ICICI Bank also recorded significant deposit growth, adding ₹1.87 lakh crore to reach a total of ₹14.26 lakh crore. Punjab National Bank, despite having the second-largest branch network, added ₹1.10 lakh crore in deposits. Canara Bank and Bank of Baroda also experienced substantial deposit growth.

Axis Bank, with a branch network of 5427, added ₹1.20 lakh crore in deposits. These figures highlight the increasing competitiveness among banks in attracting deposits and the growing importance of effective deposit-gathering strategies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.