Context:
Deposits, as Bank of Baroda stated, increased by 9.23% y-o-y in Q3FY25, reaching a domestic deposit amount of ₹ 11.65 trillion. Loans are up by 11.76% year-on-year, touching an all-time high of ₹ 9.63 trillion, thus outstripping newly growing deposits.
Bank Loan Growth
- Bank loan growth is the annual change in the total amount of loans that banks issue to consumers and businesses.
- Calculation
- Calculated as percentage change in loans from one year to the other.
- Significance
- Reflects the bank’s management quality.
- Indicator
- A higher loan growth ratio indicates a stronger loan increase.
- Higher ratio leads to more interest income, and ROA would increase.
