Financial Institutions Witness Double-Digit Growth In Q4 FY24 Disbursements

Financial institutions experienced double-digit growth in disbursements during the last quarter of FY24. Federal Bank, based in Kochi, saw its advances increase by 19.90 per cent to Rs. 212,758 crore from Rs. 177,377 crore in Q4 FY23, while Yes Bank's advances rose by 14.10 per cent to Rs. 228,465 crore during the same period. 

L&T Finance, a Non-Banking Financial Company (NBFC), witnessed a 33 per cent YoY rise in retail disbursements to Rs. 15,030 crore from Rs. 11,282 crore, supported by Urban Finance and Rural Business Finance. Suryoday Small Finance Bank (SFB) recorded a 39 per cent growth in disbursements to Rs. 2,340 crore compared to the previous year. 

In FY24, SFB's disbursements totaled over Rs. 6,900 crore, up from Rs. 5,083 crore in FY23, driven by sustained momentum in Vikas Loan and Retail Assets disbursements. Yes Bank's deposits increased by 22.50 per cent YoY to Rs. 266,364 crore, while Federal Bank saw an 18.40 per cent YoY increase to Rs. 252,583 crore. 

SFB's deposits surged by 50 per cent to Rs. 7,775 crore from Rs. 5,167 crore. However, the CASA ratio of these lenders remained under pressure during the quarter. Federal Bank's CASA ratio declined to 29.40 per cent from 32.68 per cent in Q4 FY23, and Yes Bank's CASA ratio slipped to 30.8 per cent from 30.9 per cent. In contrast, SFB's CASA ratio improved to 20.1 per cent in the reported quarter from 17.1 per cent in Q4 FY24.