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Four Banking Stocks in Focus Following Strong Q2 Business Updates
- •Axis Bank reported gross advances rising 22.7% year-on-year to ₹13,84,600 crore, while total deposits increased 20.7% with term deposits driving the growth.
- •Kotak Mahindra Bank posted advances growth of 24.7% year-on-year and a 23.2% jump in deposits, though CASA growth lagged behind total deposit expansion.
- •IDFC First Bank saw loans and advances grow 20.4% year-on-year to ₹3,14,000 crore alongside an improved CASA ratio of 51.3%.
- •IndusInd Bank registered net advances of ₹3,62,393 crore, marking an 11.2% year-on-year increase, while its CASA ratio declined sequentially to 28%.
Key Questions Answered
Axis Bank reported gross advances rising 22.7% year-on-year to ₹13,84,600 crore and total deposits increasing 20.7% year-on-year to ₹14,52,100 crore for the September quarter. However, deposit growth was heavily driven by term deposits, while CASA deposits experienced a slower growth rate of 10.6% year-on-year.
Kotak Mahindra Bank reported that advances grew by 24.7% year-on-year and deposits increased by 23.2% year-on-year. Its CASA deposits grew by 11.3% year-on-year, which was significantly slower than total deposit growth, indicating a greater contribution from non-CASA funding.
IndusInd Bank experienced a decline in its CASA ratio, which dropped to 28% from 29.4% in the previous quarter and 30.7% a year ago. This marked a 140-basis-point sequential decline and a 270-basis-point year-on-year drop.
