PSUs are de-risking their books but CASA franchises remain weak, says CLSA
Updated : June 24, 2019 11:33 AM IST
After analyzing seven PSU banks’ annual reports, CLSA believes that the CASA (Current account savings account) growth remains a challenge and that the PSU banks are de-risking their balance sheets.
Despite 9 percent loan growth, risk weighted average (RWA) was down 1 percent and RWA/asset fell 400 bps YoY to 52 percent, added the report.
CLSA said that SBI remains their top-pick among PSUs for its stronger CASA and lower stressed loans.