CSB Bank shares surged over 6% on Monday, January 6, reaching a record high of ₹519.90 in intraday trading following the bank's impressive business update for the December quarter. The stock closed 4.90% higher at ₹507.00, extending its remarkable journey from the IPO price of ₹191.00.

Strong Financial Performance Drives Market Rally

The bank reported robust financial metrics as of December 31, with total deposits reaching ₹40,460.00 crores, marking a substantial 21% year-on-year growth. This deposit expansion was primarily driven by term deposits, while Current Account Savings Account (CASA) deposits showed modest growth of 3.40% compared to the previous year.

Loan Portfolio Shows Exceptional Growth

CSB Bank's overall loan book demonstrated even stronger momentum, with gross advances reaching ₹37,208.00 crores, representing a remarkable 29% increase from the previous year. The standout performer was the gold loan segment, which expanded by 46% year-on-year and 16% quarter-on-quarter to ₹19,023.00 crores during the December quarter.

Market Performance and Analyst Outlook

The stock's impressive performance reflects strong investor confidence, with shares now trading 2.60 times higher than their issue price of ₹191.00. After gaining 47% in 2025, the stock has recovered from a 25% decline in 2024. The positive sentiment is supported by analyst coverage, with eight out of nine analysts maintaining a "buy" rating on the stock, while only one analyst has assigned a "sell" rating.

The bank's balanced growth strategy, with strong expansion in both deposit mobilization and credit disbursement, positions it favorably for continued business growth while maintaining operational efficiency.

CSB Bank has released its provisional business update for the quarter ended December 31, 2025, showcasing robust growth across key financial metrics. The private sector lender demonstrated strong performance with significant increases in both deposits and advances, reinforcing its competitive position in the banking sector.

Deposit Portfolio Expansion

The bank's deposit base showed impressive growth, with total deposits reaching ₹40,460.00 crores as of December 31, 2025. This represents a substantial 21% year-over-year increase from ₹33,407.00 crores in the corresponding period last year.

Term deposits emerged as a key growth driver, increasing 27% year-over-year to ₹32,144.00 crores. Current account and savings account (CASA) deposits stood at ₹8,316.00 crores, marking a modest 3% year-over-year growth.

Advances and Lending Performance

CSB Bank's lending portfolio maintained strong momentum with gross advances growing 29% year-over-year to ₹37,208.00 crores, compared to ₹28,915.00 crores in the previous year. The bank showed particular strength in gold-backed lending, with advances against gold and gold jewellery reaching ₹19,023.00 crores.

Sequential Growth Trends

On a sequential basis, the bank demonstrated consistent growth momentum. Total deposits increased from ₹39,651.00 crores in September 2025, while gross advances rose from ₹34,712.00 crores in the previous quarter. Gold advances also showed strong sequential growth from ₹16,456.00 crores in September 2025.

Market Response

Shares of CSB Bank ended at ₹485.00, gaining ₹1.85 or 0.23% on the trading session following the business update announcement. The positive market response reflects investor confidence in the bank's growth trajectory and operational performance.