India’s banking sector continues to demonstrate robust growth as both IDBI Bank and Bandhan Bank reported significant credit and deposit growth during the December quarter. While IDBI Bank posted an impressive 18% increase in advances, Bandhan Bank recorded a 15% rise in its credit portfolio, highlighting the sector’s resilience and the expanding demand for banking services. Here is a detailed analysis of their performance, backed by key metrics.

Strong Credit Growth at IDBI Bank

Impressive Advances: IDBI Bank reported an 18% year-on-year (YoY) growth in total advances, reaching Rs 2.06 lakh crore by the end of December 2024. This marks a sharp increase from Rs 1.75 lakh crore in the previous year.

The credit growth underscores the bank's efforts to expand its lending portfolio across various segments.
A diversified focus on retail, corporate, and SME lending has driven this robust performance.
Deposit Growth Enhances Liquidity: Total deposits rose 9% YoY to Rs 2.82 lakh crore, compared to Rs 2.58 lakh crore as of December 31, 2023.

Growth in fixed deposits and CASA accounts contributed to this rise.
Improved deposit mobilization reflects customer trust and the bank’s ability to provide attractive interest rates.
Total Business Surge: The combined effect of credit and deposit growth has pushed IDBI Bank’s total business to Rs 4.89 lakh crore, a 13% YoY increase from Rs 4.33 lakh crore.

This demonstrates a balanced approach to asset and liability management, ensuring sustainable growth.

Bandhan Bank Achieves Double-Digit Growth

Credit Expansion Continues: Bandhan Bank reported a 15% increase in its credit portfolio, reaching Rs 1.33 lakh crore during the October-December quarter.

This growth highlights the bank's consistent focus on microfinance and retail lending, which remain core pillars of its strategy.
Bandhan Bank’s efforts to diversify its lending base have begun yielding results, supporting overall credit growth.
Deposits See Robust Growth: Total deposits at Bandhan Bank grew by 20% YoY, hitting Rs 1.40 lakh crore by the end of December 2024.

CASA deposits and retail term deposits played a significant role in driving this growth.
Enhanced customer acquisition and better deposit schemes have contributed to strengthening the bank’s deposit base.
Strengthened Financial Position: The combined rise in advances and deposits reflects Bandhan Bank’s improved financial position and its ability to adapt to changing market dynamics.

Key Implications for the Banking Sector

Increased Lending Activity: The robust credit growth reported by IDBI Bank and Bandhan Bank indicates heightened demand for loans across retail, corporate, and microfinance sectors.

This aligns with India’s ongoing economic recovery and the growing appetite for credit-driven consumption.
Deposit Mobilization Remains Crucial: Both banks have focused on expanding their deposit base, which is essential for sustaining long-term growth. Improved customer trust and better savings schemes are key drivers of this success.

Sector-Wide Growth Momentum: The performance of these banks reflects broader growth trends within India’s banking sector, characterized by rising credit demand and increased deposit inflows.

Bottomline for Traders

The stellar performance of IDBI Bank and Bandhan Bank during the December quarter underscores the resilience and growth potential of India’s banking industry. With strong credit and deposit growth, both banks are well-positioned to capitalize on emerging opportunities in a rapidly recovering economy. As demand for banking services continues to expand, these institutions are set to play a pivotal role in supporting financial inclusion and economic growth.