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Bank Q2 Updates Lift Shares, but Deposit Mix Draws Attention
Three large banks shared early numbers about their business in the September quarter.
Their shares went up after the updates.
Kotak reported the fastest loan growth among the three, while Axis also recorded strong growth in loans and deposits.
IndusInd's loans and deposits grew too, but its CASA ratio—the share of deposits in certain everyday accounts—fell.
At Kotak and Axis, CASA deposits grew more slowly than total deposits.
The banks also reported raising FCNR(B) deposits and making some related loans.
Investors may consider both how quickly the banks are growing and what kinds of deposits they are using.
Shares of Kotak Mahindra Bank, Axis Bank and IndusInd Bank rose after releasing provisional September-quarter business updates on Tuesday, October 6.
Kotak Mahindra Bank reported 24.7% year-on-year advances growth and 23.2% deposit growth; its shares rose as much as 4%.
Axis Bank reported 22.7% year-on-year advances growth and 20.7% deposit growth, while CASA deposits grew 10.6%; shares gained 1.7%.
IndusInd Bank's advances grew 11.2% year-on-year and deposits 10.1%, while its CASA ratio fell to 28%; shares rose as much as 2.3%.
All three banks reported FCNR(B) deposit activity, and each update showed deposit growth outpacing CASA growth or a falling CASA ratio.
- Who
- Kotak Mahindra Bank, Axis Bank and IndusInd Bank.
- What
- The banks released provisional September-quarter business updates, and their shares rose.
- Where
- The share-price moves were reported on the BSE; the banks' business updates cover their banking operations.
- When
- Tuesday, October 6; the year is not specified in the article.
- Why
- The article links the share moves to the release of updates showing growth in advances and deposits.
Key facts
- Kotak advances
- ₹ in article: Advances rose 24.7% year-on-year and 12.7% quarter-on-quarter.
- Kotak deposits
- Deposits rose 23.2% year-on-year and 13.7% quarter-on-quarter; CASA deposits rose 11.3% year-on-year.
- Axis advances and deposits
- Gross advances were ₹13,84,600 crore, up 22.7% year-on-year; deposits were ₹14,52,100 crore, up 20.7%.
- Axis CASA
- CASA deposits were ₹5,29,600 crore, up 10.6% year-on-year and 1.5% quarter-on-quarter.
- IndusInd advances and deposits
- Net advances were ₹3,62,393 crore, up 11.2% year-on-year; deposits were ₹4,29,038 crore, up 10.1%.
- IndusInd CASA ratio
- 28%, down from 29.4% in the previous quarter and 30.7% a year earlier.
- Reported peak share moves
- Kotak rose as much as 4%, IndusInd as much as 2.3%, and Axis gained 1.7%.
Sources
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