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.