Private sector lenders CSB Bank and Karnataka Bank reported a strong credit growth for the three months ended December 31. Karnataka Bank reported a 12.4% year-on-year loan growth to Rs 63,659 crore while CSB Bank saw a 25.7% growth in credit to Rs 18,643.3 crore.
Karnataka Bank‘s deposit growth was at 7.9% to Rs 84,593 crore. CSB Bank fared better in terms of deposit growth, which increased 19% YoY to Rs 22,664 crore in Q3FY23.
Karnataka Bank saw a 10% growth in current account, savings account (CASA) deposits to Rs 26,992 crore, with the CASA ratio improving 61 basis points (bps) to 31.91%.
CSB Bank’s CASA deposits grew 8.2% to Rs 7,125.7 crore while term deposits grew 25% to Rs 15,538.3 crore.
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In Q2FY23, CSB Bank’s net interest income (NII) stood at Rs 324.97 crore, higher by 17%. The lender reported an increase of 2% in its net profit to Rs 120.6 crore in the previous quarter.
Karnataka Bank’s NII increased by 26% in Q2FY23 to Rs 803 crore while its net profit improved by 127% to an all-time high of Rs 525.5 crore.
The non-food credit advanced by the banking sector grew 17.9% while total deposits grew 9.8% for the fortnight ended December 2, according to RBI data.
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On the assets side, the main development was strengthening of the credit pick-up in 2022, ICICI Securities said in a report, addinosit growthg that the dep moderated compared to the pandemic period as household saving rates declined to a five-year low in FY22, which was also reflected in the subdued deposit growth.