Q3 FY24 report card: Bank CASA continues to remain under pressure

According to provisional data, the CASA ratio of South Indian Bank dropped to 31.79 per cent from 33.83 per cent in the same quarter of the financial year 2022-23

The current account savings account (CASA) ratio of banks continued to remain under pressure in the third quarter ended  December 2023 as customers shifted funds from CASA to term deposits.

According to provisional data the CASA ratio of South Indian Bank dropped to 31.79 per cent from 33.83 per cent in the same quarter of financial year 2022-23. Federal Bank printed a decline to 30.63 per cent from 34.24 per cent. At the same time, public sector lender Bank of Maharashtra’s CASA fell to 50.19 per cent from 52.50 per cent a year ago.

In comparison, the CASA ratio of South India Bank was 32.03 per cent in the quarter ended September 30, 2023. Similarly, Federal Bank had a CASA ratio of 31.17 per cent and Bank of Maharashtra was at 50.71 per cent.

 

Meanwhile, the credit book of the lenders recorded double digit growth in the quarter ended December 31, 2023.

Individually, Karur Vysya Bank posted 17.09 per cent year-on-year (Y-o-Y) growth in advances to Rs 64,168 crore in the reported quarter as compared to the quarter ended December 31, 2022. Similarly, Dhanlaxmi Bank’s advances grew by 11.93 per cent to Rs 10,347 crore, South Indian Bank (10.83 per cent) to Rs 77,713 crore, Federal Bank (18 per cent) to Rs 2.02 trillion, Bank of Maharashtra (20 per cent) to Rs 1.89 trillion and CSB Bank by 22.59 per cent to Rs 22,863.73 crore.

Similarly, the deposit of the lenders witnessed double digit growth from the year-ago period — Karur Vysya Bank printed 12.82 per cent growth to Rs 85,665 crore, Dhanlaxmi Bank by 10.60 per cent to Rs 14,310 crore, South Indian Bank by 9.37 per cent to Rs 90,672 crore, Federal Bank by 19 per cent to Rs 2.40 trillion, Bank of Maharashtra by 18 per cent to Rs 2.46 trillion and CSB Bank rose by 20.65 per cent to Rs 27,344.83 crore.

Separately, non-banking finance company (NBFC) Mahindra & Mahindra Financial Services posted 7 per cent improvement in disbursements in the third quarter of financial year 2024 to nearly Rs 15,500 crore. The business assets in the quarter under review was around Rs 96,850 crores growing 25 per cent over December 2022 and approximately 17 per cent over March 2023.

The collection efficiency of the company (CE) was at 98 per cent for December 2023, an improvement over 94 per cent achieved in November 2023. December 2022 recorded a CE of 98 per cent.