CSB BANK REPORTED A REVERSAL IN BUSINESS PERFORMANCE IN Q2FY25
News: CSB Bank reported a reversal in business performance in Q2FY25, post a dismissal Q1FY24. Gross advances grew 19.59% YoY (7.06% QoQ) to ₹26,871 crore, driven by 27.69% YoY (9.67% QoQ) increase in gold loans to ₹12,005 crore. Deposit accretion came at 25.17% YoY (6.42% QoQ) to ₹31,841 crore, supported by term deposit growth of 34.35% YoY (7.57% QoQ) to ₹24,171 crore. CASA remained flat QoQ at ₹7,670 crore (2.98% YoY) resulting in decline in CASA ratio by 519 bps YoY (80 bps QoQ).
Views: Growth remains steady while higher growth in gold loans is expected to provide support to increase in cost of funds, amid faster accretion in term deposit, thereby supporting margins. Tailwinds in terms of anticipated rise in gold price could drive valuation.
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