After a rough Q3, City Union Bank’s path remains uncertain
1 year, 10 months ago

After a rough Q3, City Union Bank’s path remains uncertain

Live Mint  

Shares of City Union Bank fell by almost 16% on Monday. To be sure, slow loan growth, and the lack of deposit mobilisation are a key overhang on the stock, that could exert pressure on net interest margin, going ahead. According to Krishnan, “Deceleration in loan growth is likely to be a common theme for most mid-sized banks including CUB, going forward. Given the sharp spike in deposit pricing and relatively lower branch productivity, mid-sized banks may choose to calibrate their loan growth aspirations.” CUB’s deposit growth in Q3 stood at 7% y-o-y. While deposit mobilisation is key to sustaining net interest margins, slower deposit mobilisation would not affect loan growth for next few quarters due to excess liquidity.

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What lies under the hood in banks' Q3 business updates
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3 days, 9 hours ago

What lies under the hood in banks' Q3 business updates

Live Mint  

Initial updates from banks for the December quarter reveal a mixed performance, with private and public sector lenders charting distinct paths in loans and deposit growth. The moderation in HDFC Bank’s loan growth, coupled with healthy deposit growth, contributed to a 150-basis point sequential decline in its LDR, Bernstein added. Among banks that reported Q3 updates, loan growth ranged between …

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