Thrissur-based lender CSB Bank on Thursday, July 20, reported a 15.5 percent year-on-year (YoY) rise in net profit to Rs 132.2 crore for the first quarter that ended June 30, 2023. In the corresponding quarter last year, CSB Bank posted a net of Rs 115 crore, the bank said in a regulatory filing.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 17.2 percent, coming at Rs 364 crore against Rs 310.7 crore in the corresponding quarter of FY23.
The gross non-performing assets (GNPAs) stood at 1.27 percent in the June quarter against 1.26 percent in the March quarter. Net NPAs came at 0.32 percent against 0.35 percent quarter-on-quarter.
The non-interest income for the first quarter stood at Rs 121.55 crore against Rs 54.85 crore for the same period last year, up by 122 percent. While treasury income grew by 23 percent, other income,, excluding treasury income increased by Rs 64.40 crore or by a massive 143 percent on a year-on-year basis.
Capital adequacy ratio (CAR) is at 25.99 percent, which is well above the regulatory requirement —an improvement of 53 bps as on June 30, 2023, the lender said.
Total deposits grew by 21 percent year-on-year. Correspondingly, the CASA (current account savings account) book grew by 6 percent from Rs 7,121.88 crore to Rs 7,548.08 crore year-on-year. The CASA ratio stood at 30.84 percent as on June 30, 2023.
Net advances grew by 31 percent year-on-year to Rs 21,103.55 crore as on June 30, 2023, supported by a robust growth of 42 percent in gold loans on a year-on-year basis. The bank’s gold loan portfolio crossed the Rs 10,000-crore mark.
Pralay Mondal, Managing Director and CEO said, despite the increased costs on account of higher investments made in people, distribution, systems etc, the operating profit recorded a growth of 17 percent supported by growth in NII and other income. Key indicators like NIM, CRAR, RoA, NPA ratios, etc. continue to be strong.
Shares of CSB Bank ended at Rs 289.40, up by Rs 0.70, or 0.24 percent on the BSE.
