CSB Bank expects the share of gold loans in its portfolio to range from 45% to 55% by FY25.

In an interview with CNBC-TV18, Pralay Mondal, Managing Director and CEO of the bank, said after the business updates for the bank's second quarter of FY24.

He said, “We will sustain at 30% and hence our mix will remain between 45% and 50% and that will sustain till FY25. Also, we are focusing on SME and wholesale in a big way, and all of that we will start seeing from FY25 onwards and till then gold will continue to be close to 50% of our portfolio.”

Discussing loan growth, Mondal stated that the bank intends to outpace the overall system's loan growth rate, and within the core industry segment, CSB Bank aims for a 50% higher loan growth rate. The bank anticipates achieving a loan growth rate of 25% for FY24.

In his view, the expansion of low-cost deposit accounts (CASA accounts) has been relatively subdued compared to the growth in overall deposits. Customers are expected to yield a more favourable return on term deposits than on CASA accounts.

“The growth in CASA has been slightly muted compared to the deposit growth; if you look at most of the banks in the system, whatever we have seen so far, there has been faster deposit growth than CASA, and that is when you have a (G-sec) at 7.2 plus and it is bound to happen because customers will have better returns on deposits compared to CASA,” said Mondal.

He further added, “Having said that the core CASA, which is current and savings, will continue to grow for banks which has a full-service franchise. For us also, we are building that gradually, and hopefully in the next few years, we will continue to see momentum on the CASA franchise as well.”

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