Federal Bank leads in credit expansion among Kerala-based lenders
Federal Bank led the way in gross loan expansion while CSB Bank showed the highest deposit growth among Kerala-headquartered lenders which published their quarterly business numbers so far.
Federal Bank reported a 20% year-on-year rise in gross loan portfolio to Rs 2.24 lakh crore at the end of June. Fairfax-backed CSB Bank clocked a 17.8% rise in gross loans to Rs 25099 crore while South India Bank's loan portfolio rose 11.4% to Rs 82510 crore.
City Union Bank and Dhanlaxmi Bank are yet to publish their first quarter business numbers till Wednesday noon. ESAF Small Finance Bank has not shared the numbers as well.
In deposit collection, CSB Bank reported the highest 22.4% year-on-year growth to Rs 29920 crore, albeit on a lower base. Federal Bank's deposit collection jumped 19.6% to Rs 2.66 lakh crore in a fiercely competitive market amid tight liquidity.
South Indian Bank reported a 8.41% rise in deposits to Rs 1.04 lakh crore.
These are according to the provisional numbers submitted to stock exchanges.
All the banks have witnessed a fall in their current and savings account ratios (CASA), possibly due to the fact that account holders are shifting their money in term deposits to get a higher return from savings accounts. Higher CASA ratio helps achieve higher net interest margin.
Federal Bank's CASA ratio dipped to 29.28% at the end of June from 31.85% a year prior to that. CSB saw the ratio to dip significantly to 24.9% from 30.84%. South Indian Bank's CASA ratio fell to 3.87% from 32.64% over the same
