CSB Bank hopes to maintain net interest margin above 5%
Pralay Mondal, the Managing Director and CEO of CSB Bank told CNBC-TV18 he is confident that the net interest margin (NIM), at 4.84% in the second quarter, will be the bottom of the NIM cycle for the bank.
Pralay Mondal, the Managing Director and CEO of CSB Bank expects net interest margins (NIM) to have bottomed out in the second quarter and is hopeful it will only improve from the next quarter.
"We are pretty confident that 4.84%, which we achieved last quarter (July-September 2023), will be the bottom of the NIM cycle for us, and from here onwards, we will pick it up," he told CNBC-TV18.
The NIM for the first half is at 5.12%, he said, adding, they will ensure it remains above 5%.
However, analysts expect the banking sector to continue to face challenges in the form of an increase in the cost of funds for some time.
CSB Bank reported a 10% increase in net profit in the second quarter at ₹133 crore from ₹121 crore last year, mainly due to a decrease in bad loans. The Kerala-based bank had a net profit.
Total income rose to ₹836 crore from ₹600 crore last year.
Shares of CSB Bank were down 4% at ₹344.50. The shares have gained more than 4% in the past month.
(Edited by : Shweta Mungre)
First Published: Oct 23, 2023 2:33 PM IST
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