Shares of CSB Bank rose over 6% in Monday’s trading session, January 5, after the lender released its business update for the December quarter after market hours on Friday, pointing to robust growth in its loan book.
For the December quarter, CSB Bank reported a sharp 29% year-on-year rise in its overall loan book, which stood at Rs 37,208 crore. The growth was primarily driven by the bank’s gold loan segment, which continues to be a key pillar of its lending strategy.
Gold loans surged 46% year on year and grew 16% sequentially to Rs 19,023 crore during the quarter, highlighting sustained demand and strong execution in the segment. The strong performance in gold loans offset relatively slower traction in some other retail segments.
On the liabilities side, total deposits grew 21% from a year ago, largely led by term deposits. However, growth in low-cost Current Account and Savings Account (CASA) deposits remained muted, rising just 3.4% year on year, indicating continued pressure on funding mix despite overall balance sheet expansion.
Market sentiment around the stock remains largely positive. Out of the nine analysts tracking CSB Bank, eight have a “buy” rating on the stock, while one analyst has a “sell” rating, reflecting broad confidence in the bank’s growth outlook despite challenges around CASA mobilisation.
The strong loan growth, particularly in gold loans, and healthy deposit expansion appear to have driven investor optimism, pushing CSB Bank shares higher in Monday’s session.
