Shares Of Federal Bank, CSB Bank, Karur Vysya Bank Surge After Quarterly Business Updates
Indian rupee banknotes of various denominations sit in a cash register. (Photographer: Dhiraj Singh/Bloomberg)

Shares Of Federal Bank, CSB Bank, Karur Vysya Bank Surge After Quarterly Business Updates

Shares of Federal Bank Ltd., CSB Bank Ltd. and Karur Vysya Bank Ltd. gained after the mid-sized private sector lenders reported a rise in advances and CASA in the quarter ended December.

Gross advances of the lenders rose in the range of 5-23% year-on-year in the October-December period, according to their quarterly business updates released on the bourses. While total deposits of Federal Bank and CSB Bank rise over the year earlier, that Karur Vysya Bank dropped marginally.

Here’s a look at how the three private banks fared in the quarter ended December 2020: (year-on-year)

Federal Bank

  • Total deposits rose 12% to Rs 1.62 lakh crore.
  • Gross advances up 6% to Rs 1.28 lakh crore.
  • CASA rose 23% to Rs 55,739 crore.
  • CASA ratio stood at 34.48% against 31.46%.
  • Customer deposits rose 13% to Rs 1.56 lakh crore.
  • Interbank deposits up 51% to Rs 2,849 crore.
  • Liquidity coverage ratio stood at 248.26% compared with 181.3%.

CSB Bank

  • Total deposits rose 16.5% to Rs 17,753 crore.
  • Gross advances up 22.64% to Rs 13,425 crore.
  • CASA increased 23.88% to Rs 5,393 crore.
  • Term deposits up 13.5% to Rs 12,360 crore.
  • Advances against gold and gold jewellery up 60.36% to Rs 5,633.75 crore.

Karur Vysya Bank

  • Total business grew 2.1% to Rs 1.14 lakh crore.
  • Total deposits fell to Rs 62,090 crore from Rs 62,262 crore.
  • Advances rose 5% to Rs 52,103 crore.
  • CASA up 12.8% to Rs 21,501 crore.

Shares of Federal Bank gained as much as 5% in morning trade on Monday to Rs 71.4 apiece—the highest since March 2020. Of the 41 analysts tracking the stock, 37 have a ‘buy’ rating and two each suggest a ‘hold’ and a ‘sell’. The stock is trading at its 12-month consensus price target of Rs 71.

Shares of CSB Bank gained as much as 4.2% to Rs 228 apiece. The stock is up for the third straight day. The average of Bloomberg consensus 12-month target prices implies an upside of 29.2%.

Shares of Karur Vysya Bank gained as much as 4.5% to Rs 48 apiece. The stock is up for the third straight day. Of the 14 analysts tracking the stock, nine recommend a ‘buy’, three suggest a ‘hold’ and the remaining two have a ‘sell’ rating. The average of Bloomberg consensus 12-month target prices implies an upside of 16.5%.

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