South Indian Bank is attracting low-cost deposits, a key factor in its sustained business momentum. CASA deposits, which reflect funding efficiency, grew 17.47% year-on-year to ₹39,621 crore. This increase boosted the bank's CASA ratio to 32.12%, up from 31.84% last quarter and 31.37% a year ago.
Robust Loan and Deposit Expansion
The bank's loan book, known as advances, expanded by a healthy 15.66% year-on-year to ₹1.01 lakh crore. Total deposits also grew substantially, up 14.71% to ₹1.23 lakh crore. These numbers show strong demand for loans and the bank's ability to gather funds effectively.
Market Reaction
In response to the operational update, South Indian Bank shares saw a significant rise. The stock climbed nearly 6% to close at ₹36.20 on Wednesday. Despite a modest 4.5% year-to-date correction, the stock has delivered a strong 53% return over the past year.