IndusInd Bank Q3 Business Update: Loan Book Falls 13%, CASA Ratio Contracts
Net advances dropped 13.1% to Rs 3.19 lakh crore in the October-December period.
IndusInd Bank Ltd. witnessed a sharp fall in its loan book during the third quarter of the current financial year.
Net advances dropped 13.1% to Rs 3.19 lakh crore in the October-December period, from Rs 3.67 lakh crore in the corresponding quarter last year, according to provisional business updates disclosed via a stock exchange filing on Monday. On a quarterly basis, it fell 2.2%.
Deposits were down 3.8% to Rs 3.94 lakh crore from Rs 4 lakh crore in the year-ago period. Sequentially, it rose 1.1%.
The CASA ratio, the share of deposits across current and savings accounts to the total deposits of the bank, contracted to 30.3% from 34.9% last year and 30.7% in the preceding quarter.
A high CASA ratio indicated that a bank has enough funds at a lower cost offering an opportunity to earn good profits. If the CASA ratio is low, then the bank might have to rely on costlier sources of funds.
IndusInd Bank is yet to announce the date for the board meeting to consider and approve the third quarter financial results. The Mumbai-based lender is the fifth largest private bank in India in terms of revenue.
Shares closed 0.5% lower at Rs 899.95 apiece on NSE, ahead of the announcement, compared to a 0.3% decline in the benchmark Nifty 50. The stock has fallen 10% in the last 12 months.
