Here's why the Nifty Bank will be the index to watch on Monday

The Nifty Bank index could well be the index to watch out for on Monday, April 6. The index includes 14 constituents, and barring SBI and ICICI Bank, nearly all of them came out with their quarterly business updates over the long weekend, to which these stocks could react.

The Nifty Bank index made an intraday low below the 50,000 mark last Thursday, before staging a rebound of over 1,600 points from lower levels to end with gains and above the mark of 51,000.

Nearly all the constituents of the Nifty Bank, including HDFC Bank, Axis Bank, Kotak Mahindra Bank,

Canara Bank, Bank of Baroda, Union Bank of India, PNB, IndusInd Bank, AU Small Finance Bank, Yes Bank, IDFC First Bank and Federal Bank came out with their respective business updates for the March quarter over the last three days.

HDFC Bank, whose shares are down over 26% from their 52-week high level, reported a 12% growth in its gross advances from last year, while its deposits grew by 14.4% from the March quarter. Its Credit-Deposit ratio also declined sequentially. You can read more on that here.

Axis Bank's business momentum was strong and above the system average, with gross advances rising 18.3% from last year, while deposits grew 13.9% for the March quarter. On a sequential basis, advances and deposits rose by 6.2% and 5.9% respectively.

For Kotak Mahindra Bank, the loan and deposit growth turned out to be below expectations with net advances rising 16.2% from last year and deposits growing by 14.7% for the same period. Sequentially, loan growth stood at 3.2%, while deposit growth was 5.5%.

IndusInd Bank continues to see a contraction in business with net advances declining by 8.7% from last year, while deposits declining by 2.6% year-on-year. Both parameters were down from the December quarter as well, with a 0.8% contraction in loan growth and 1.6% in deposit growth.

IDFC First Bank's loan growth was above expectations, but deposit growth turned out to be below what was anticipated. At over 100%, the lender's Credit-Deposit Ratio is the highest in the system so far. Advances grew by 20% from last year, while deposits were up by 17.2% year-on-year. CD Ratio stood at 102.1% from 93.9% sequentially as well as last year.

Bank of Baroda's global deposits were up 12% from last year, while domestic deposits grew by a similar quantum at 12.8%. Domestic advances were up 14.5% year-on-year, while global advances were up 16.2%. On a sequential basis, both parameters grew by 6% each.

PNB's global deposits increased by 9.2% year-on-year and 3% sequentially, while domestic deposits were also up 9.1% from last year and 3.3% from the December quarter. Global advances were up 13%, while domestic advances were up 12.2% with both parameters rising by 2.5% quarter-on-quarter.

Union Bank reported a 5.8% growth in total business, while deposits on a global level were up 2.7% from last year. Both global and domestic advances grew by 10% from last year and between 6% to 7% on a sequential basis.

Yes Bank's loans and advances grew by 11% year-on-year, while deposits were up 12%. On a sequential basis, loans grew 5.8% and deposits were up 9%. Liquidity Coverage Ratio stood at 119%.

The Nifty Bank index is down 16.5% from its 52-week high of 61,764 which it had surged to earlier in the year.