Bank Stocks with High CASA Deposits in Q3 to Keep an Eye On

Synopsis: Several banks saw robust CASA growth in Q3FY26 like Ujjivan SFB, South Indian Bank, Tamilnad Mercantile Bank, and AU SFB which reported YoY growth and QoQ growth, strengthening low-cost deposit bases.

CASA deposits refer to the total funds that a bank receives in its Current Account and Savings Account deposits. Several banks reported healthy growth in their Current Account and Savings Account (CASA) deposits in Q3FY26, reflecting improved retail traction and a stronger low-cost funding base. Higher CASA deposits help banks reduce their cost of funds and improve margins, supporting profitability.

These banks witnessed steady year-on-year as well as sequential growth in CASA deposits during the quarter, indicating resilient deposit mobilisation and stronger customer engagement.

Ujjivan Small Finance Bank Ltd

Ujjivan Small Finance Bank Limited is an Indian bank offering a wide range of financial services. It provides deposit accounts, fixed deposits, and diverse loan products including home, business, vehicle, micro, agricultural, and MSME loans. The bank also offers digital and branch banking services, insurance, credit/debit cards, safe deposit lockers, and retail forex and trade services, serving retail, corporate, and NRI customers across India.

With a market capitalisation of Rs. 11,274 cr, the shares of Ujjivan Small Finance Bank Ltd closed at Rs. 58.09 per share, decreasing from its previous close of Rs. 61.55 per share.

CASA (Current Account & Savings Account) deposits at Rs. 11,535 Cr have grown 33.2% year-on-year (YoY) and 7% quarter-on-quarter (QoQ). The CASA ratio stands at 27.3%, indicating that 27.3% of the bank’s total deposits are in low-cost current and savings accounts.

South Indian Bank Ltd

The South Indian Bank Limited provides personal banking products such as savings/current accounts, loans, deposits, insurance, and wealth management, along with NRI banking services including foreign currency accounts, remittances, and portfolio investments. The bank also caters to business banking needs with current accounts, working capital and commercial loans, trade finance, and merchant services, supported by a network of branches, ATMs, and digital banking platforms.

With a market capitalisation of Rs. 10,762 cr, the shares of South Indian Bank Ltd closed at Rs. 41.12 per share, decreasing from its previous close of Rs. 41.74 per share. 

CASA deposits increased to Rs. 37,640 Cr in Q3FY26 from Rs. 32,830 Cr in Q3FY25, reflecting a YoY growth of 14.6% and a QoQ rise of 2.1% from Rs. 36,841 cr in Q2FY26. The CASA ratio stood at 31.84% in Q3FY26.

Tamilnad Mercantile Bank Ltd

Tamilnad Mercantile Bank Limited provides deposit accounts, credit/debit cards, trading and investment services, mutual funds, insurance, forex, and digital banking. The bank also offers diverse loan products for individuals, businesses, MSMEs, and NRIs, including home, vehicle, personal, education, agricultural, and commercial loans, along with secured overdrafts and microenterprise financing.

With a market capitalisation of Rs. 10,593 cr, the shares of Tamilnad Mercantile Bank Ltd closed at Rs. 669 per share, decreasing from its previous close of Rs. 690.05 per share.

In Q3FY26, CASA deposits grew to Rs. 15,847 Cr, up 4.51% QoQ and 14.94% YoY, supported by current account deposits of Rs. 4,442 Cr (2.49% QoQ, 15.62% YoY) and savings bank deposits of Rs. 11,405 Cr (5.32% QoQ, 14.68% YoY), reflecting healthy growth in the bank’s low-cost deposit base. CASA share stood at 27.95%. 

AU Small Finance Bank

AU Small Finance Bank Limited offers deposit accounts, debit/credit/prepaid cards, loans for vehicles, homes, businesses, agriculture, and commercial properties, as well as insurance, mutual funds, and pension products. The bank also provides digital and branch banking, merchant and government banking services, and caters to individuals, SMEs, NRIs, professionals, and government institutions through its branches and correspondent networks.

With a market capitalisation of Rs. 71,691 cr, the shares of AU Small Finance Bank closed at Rs. 958.65 per share, decreasing from its previous close of Rs. 973.10 per share.

CASA deposits increased from Rs. 34,402 Cr in Q3FY25 to Rs. 39,946 Cr in Q3FY26, marking a YoY growth of 16.0%. Sequentially, deposits rose from Rs. 38,963 Cr in Q2FY26 to Rs. 39,946 Cr in Q3FY26, reflecting a QoQ growth of 2.5%. CASA ratio stood at 29%.

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