These three bank stocks gained up to nearly 4% after reporting their Q2 business updates

Shares of CSB Bank Ltd., Indian Bank Ltd. and South Indian Bank Ltd. gained up to nearly 4% on Friday, October 3, after the lenders reported their business updates for the second quarter over the previous two days and will be reacting to the same.

Here's a look at their individual business updates:

CSB Bank

CSB Bank Ltd. witnessed a healthy loan growth of 29% in the September quarter to ₹34,730 crore from ₹26,871 crore in the previous year.

This was led by gold loans, which increased by 37% to ₹16,457 crore from ₹12,005 crore in the previous year and were up 10% sequentially from ₹14,928 crore. Its total loan growth was up 5.4% sequentially.

The management is aspiring for the lender's growth to be 2 times that of the industry.

CSB Bank's deposit growth was strong at ₹39,651 crore, up 24.5% from ₹31,840 crore in the year-ago period. However, term deposits and current accounts savings accounts (CASA) increased by 29.3% and 9.4% from last year, respectively.

The lender also revised its NIMs guidance downwards in the June quarter.

South Indian Bank

South Indian Bank Ltd.'s advances increased 8.9% to ₹92,287 crore in the September quarter from ₹84,714 crore in the previous year. It was up 3.5% from ₹89,198 crore in the previous quarter.

Its total deposits increased 9.7% on a year-on-year basis to ₹1.15 lakh crore and were up 5.7% sequentially.

Its CASA increased 9.9% to ₹36,841 crore in the second quarter from ₹33,530 crore in the previous year, of which 1.8% was on a sequential basis. While its CASA ratio expanded to 31.86% in the September quarter from 31.8% in the previous year, it contracted sequentially from 32.06%.

South Indian Bank has guided for its Return on Assets (RoA) to be at 1% for the full financial year.

Indian Bank

Indian Bank Ltd.'s loan growth increased by 13% in the September quarter. This was led by retail, agriculture and MSMEs (RAM), which increased 16% to ₹3.78 lakh crore from ₹3.25 lakh crore in the previous year.

The lender reported strong deposit growth in a soft environment, a growth of 12% to ₹7.76 lakh crore in the September quarter from ₹6.93 lakh crore in the year-ago period.

Its advances were up nearly 13% to ₹6.22 lakh crore from ₹5.51 lakh crore in the September quarter last year.

Indian Bank has a guidance of 8-10% growth in deposits and 10-12% growth in advances.

On Wednesday, the slew of banking reforms announced by the Reserve Bank of India led to the Nifty Bank index reporting its best day in three months, and the index also closed above the mark of 55,300. However, the PSU Bank index underperformed.

Shares of CSB Bank, Bank of India, and South Indian Bank gained up to 3.6% in early trade on Friday.

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