scorecardresearchCSB Bank gains over 4% on strong quarterly business update

CSB Bank gains over 4% on strong quarterly business update

Updated: 03 Apr 2023, 11:46 AM IST
TL;DR.

  • The bank's deposits grew at a healthy rate of 21.4% on year and over 8.1% sequentially to 24,505.8 crore within which term deposits grew 24.1% on year and over 7% quarter-on-quarter.

On the technical front, the stock has gained 41.29% from its 52-week low of  <span class='webrupee'>₹</span>178.0 recorded on June 20, 2022.

On the technical front, the stock has gained 41.29% from its 52-week low of 178.0 recorded on June 20, 2022.

Shares of CSB Bank Ltd rose over 4% on Monday after the lender reported strong quarterly business numbers on Saturday.

The bank's deposits grew at a healthy rate of 21.4% on year and over 8.1% sequentially to 24,505.8 crore within which term deposits grew 24.1% on year and over 7% quarter-on-quarter.

According to brokerage house Motilal Oswal, significant growth in gold loans—which increased by 47.7% on year and 10.5% sequentially—led to a strong increase in gross advances of 30.3% year on year and 11.7% sequentially to 20,841.66 crore.

Growth in gross advances, excluding gold loans, too was healthy at 18.2% on year (12.9% sequentially).

“Disbursement in the gold loans portfolio continued to remain strong, which along with healthy growth in other segment drove the overall loan growth. Growth in deposits too was strong with Current Account Saving Account (CASA) deposits witnessing a healthy traction driving up the CASA ratio,” it said.

The growth in CASA deposits was strong at 16.1% year-on-year (over 10.7% quarter-on-quarter).

On the technical front, the stock has gained 41.29% from its 52-week low of 178.0 recorded on June 20, 2022. The stock price rose 18.9% and outperformed its sector by 8.6% in the past year.

Article
Last five trading sessions of CSB Bank Ltd

The bank's weekly average delivery volume is 40.84%.

However, according to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the stock started to trade with a gap-up but follow-up buying is missing, the stock has stiff resistance around 260. “The next leg of rally would be possible only above 260 , also the volume has dried down, hence aggressive bets should be avoided. The immediate support is at 230,” he said.

 

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First Published: 03 Apr 2023, 11:46 AM IST