CSB Bank shares rise after 30% growth in advances and nearly 50% in gold loans

The bank’s CASA (current and savings accounts) deposits in the March quarter also jumped to Rs 7,886.3 crore, up 16.1 percent year-on-year and 10.67 percent Quarter-on-Quarter.

The CASA ratio was at 32.18 percent during the March quarter compared with 33.66 percent in the year-ago quarter and 31.4 percent in the previous quarter ended December 2022.

The CASA ratio indicates how much of a bank’s total deposits are in both current and savings accounts. A higher ratio means a larger portion of a bank’s total deposits are in current and savings accounts, thus indicating lower cost of funds as banks pay minimal interest on these deposits.

CSB Bank also said that it disbursed gold loans worth Rs 9,692.8 crore during the March quarter, up 47.7 percent YoY and 10.5 percent QoQ. Share of gold loans in the bank’s total portfolio stood at 46.5 percent during the quarter from 41 percent a year ago and 47 percent in December.

Ex-gold loans, CSB Bank’s loan book stood at Rs 11,148.9 crore in the March quarter, up 18.15 percent from the year-ago period and 12.9 percent sequentially.

Calculated credit-deposit ratio stood at 85.05 percent from 79.24 percent in the year-ago quarter and 82.3 percent in December. The credit-deposit ratio indicates how much of the money banks have raised in the form of deposits has been deployed as loans. Low CD ratio indicates poor credit growth as compared to deposit growth.

CSB Bank also said that it has crossed the milestone of 700 branches, after its latest addition in Noida. It has opened 100 branches each in Kerala in the last three financial years.

Shares of CSB Bank are off the day's high but are trading 2.6 percent higher at Rs 251.55.