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CSB Bank has reported 4% decline in
net profit at Rs 149.97 crore for the quarter ended December 2023 (Q3FY2024).
The bank has posted healthy 9% growth in net interest income (NII), while the
core fee income of the bank improved 36% in Q3FY2024. The Net Interest Margin
(NIM) of the bank improved on sequential basis to 5.10% in Q3FY2024 from 4.84%
in Q2FY2024, but declined from 5.80% in the corresponding quarter of previous
year.
On business front, the
bank as has posted 20% growth in business with strong 18% surge in loan book.
The asset quality of the bank continued to improve in Q3FY2024. Bank has
substantially reduced the credit to deposit ratio to 83.6% at end December 2023
from 85.3% at end December 2022. However, the CASA ratio of the bank has
declined to 27.6% at end December 2023 from 31.4% at end December 2022.
Asset quality improves: The bank has continued
to improve asset quality in Q3FY2024.
The fresh slippages of
loans stood at Rs 36 crore in Q3FY2024 compared with 54 crore in previous
quarter and Rs 26 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 22 crore, upgradations at Rs 12 crore and the write-off of loans
was at Rs 8 crore in Q3FY2024.
The standard
restructured loan book of the bank remained nil end December 2023
Provision coverage ratio
was steady at 91.85% at end December 2023 compared to 91.75% a quarter ago and
91.93% a year ago.
The capital adequacy
ratio of the bank stood at 23.0% with Tier I ratio at 21.6% at end December
2023.
The risk weighted assets
of the bank has increased 39% YoY to Rs 14190 crore end December 2023.
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Asset Quality
Indicators: CSB Bank
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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Dec-22
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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278.73
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284.76
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270.66
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262.56
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271.29
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-2
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6
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3
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Net NPA (Rs Crore)
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70.23
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72.49
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67.77
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71.82
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77.66
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-3
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-2
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-10
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% Gross NPA
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1.22
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1.27
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1.27
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1.26
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1.45
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-5
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-4
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-23
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% Net NPA
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0.31
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0.33
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0.32
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0.35
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0.42
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-2
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-4
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-11
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% PCR
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91.85
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91.75
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92.54
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92.11
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91.93
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10
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-26
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-8
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% CRAR - Basel III
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22.99
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23.96
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25.99
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27.10
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25.78
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-97
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-411
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-279
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% CRAR - Tier I -
Basel III
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21.60
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22.56
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24.80
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25.87
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24.27
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-96
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-427
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-267
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth:
The business of the bank
has increased 20% YoY to Rs 50212 crore end December 2023, driven by 18% surge
in advances to Rs 22867 crore. Deposits rose 21% to Rs 27345 crore at end
December 2023.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 6% YoY to Rs 7543 crore at end December
2023. The CASA ratio declined to 27.6% at end December 2023 compared to 31.4%
at end December 2022, while also fell from 29.3% a quarter ago. The term
deposits have increased 27% to Rs 19802 crore end December 2023.
Strong loan growth: Advances growth was
driven by retail loans rising 28% YoY to Rs 14276 crore at end December 2023,
while credit to MSME jumped 28% to Rs 2369 crore at end December 2023. The
corporate credit has increased 10% to Rs 6013 crore end December 2023.
Investment book of the bank jumped 30% YoY to Rs 7153 crore at end December 2023.
The AFS book galloped 47% to Rs 1564 crore, while HTM book rose 24% to Rs 5424
crore at end December 2023. The duration of the AFS investment portfolio stood
at 2.57 years end December 2023 compared with 2.29 years at end December 2022.
Margins improve qoq,
declines yoy: The bank has showed 112 bps YoY jump in cost of deposits to 5.42%,
while yield on advances increased 47 bps YoY to 11.49% in Q3FY2024. Thus, the
NIM has declined 70 bps YoY to 5.10%, while improved qoq from 4.84% in Q2FY2024.
Branch expansion: The bank has added 13
branches and 24 ATMs in Q3FY2024, taking overall tally to 747 branches and 570
ATM`s end December 2023.
Book value of the bank stood at Rs
200.1 per share at end December 2023, while the adjusted book value (net of
NNPA) was Rs 196.1 per share at end December 2023.
Quarterly Performance
NII growth slows as NIM declines
yoy: Bank
has recorded 29% increase in the interest earned at Rs 761.83 crore, while
interest expenses surged 56% to Rs 379.16 crore in Q3FY2024. NII improved 9% to
Rs 382.67 crore in the quarter ended December 2023.
Healthy growth in the
core fee income: Bank has posted strong 36% growth in core fee income to Rs 69
crore, while the forex income jumped 42% to Rs 3 crore. Further, the treasury
income zoomed 103% to Rs 13 crore, leading to 39% jump in the overall
non-interest income to Rs 125.34 crore in the quarter ended December 2023.
Expenses ratio jumps: The operating expenses
of the bank increased 27% to Rs 312.14 crore, as other expenses moved up 47% to
Rs 139.33 crore, while employee expenses increased 14% to Rs 172.81 crore in
Q3FY2024. Cost to income ratio increased to at 61.4% in Q3FY2024 compared with
56.0% in Q3FY2023, allowing only 1% growth in the Operating Profit to Rs 195.87
crore.
Provisions and
contingencies write back continues: The bank has written back provisions of Rs 4.54 crore. The bank
has written back loan loss provisions of Rs 5.60 crore, while other provisions were
at Rs 1.10 crore.
Effective tax rate was steady at 25.2% in Q3FY2024 from 25.2% in Q3FY2023. Net Profit declined 4%
YoY to Rs 149.97 crore during quarter ended December 2023.
Financial Performance
9MFY2024:
Bank has posted 6%
increase in net profit to Rs 415.36 crore in the nine month ended December 2023
(9MFY2024). The net interest income increased 11% to Rs 1090.38 crore, while
non-interest income moved up 104% to Rs 387.77 crore, pushing up net total
income by 26% to Rs 1478.15 crore in 9MFY2024. The operating expenses increased
38% to Rs 926.22 crore, while provision and contingencies were written back
amounting to Rs 3.13 crore, allowing profit before tax to increase 6% to Rs
555.06 crore in 9MFY2024. The cost-to-income ratio surged to 62.7% in 9MFY2024
compared to 57.0% in 9MFY2023. An effective tax rate was steady at 25.2% in
9MFY2024 compared to 25.2% in 9MFY2023. The net profit has increased 6% to Rs
415.36 crore in 9MFY2024.
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CSB Bank: Results
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Particulars
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2312 (3)
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2212 (3)
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Var %
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2312 (9)
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2212 (9)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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761.83
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592.05
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29
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2132.67
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1683.16
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27
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2319.65
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2038.32
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14
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Interest Expended
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379.16
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242.31
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56
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1042.29
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697.76
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49
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985.81
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885.01
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11
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Net Interest Income
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382.67
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349.74
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9
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1090.38
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985.40
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11
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1333.84
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1153.31
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16
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Other Income
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125.34
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89.90
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39
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387.77
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189.69
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104
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315.68
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246.79
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28
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Net Total Income
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508.01
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439.64
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16
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1478.15
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1175.09
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26
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1649.52
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1400.10
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18
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Operating Expenses
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312.14
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246.20
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27
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926.22
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669.57
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38
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942.12
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786.38
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20
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Operating Profits
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195.87
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193.44
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1
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551.93
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505.52
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9
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707.40
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613.72
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15
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Provisions &
Contingencies
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-4.54
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-14.96
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-70
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-3.13
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-17.01
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-82
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-26.21
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-0.51
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5039
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Profit Before Tax
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200.41
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208.40
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-4
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555.06
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522.53
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6
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733.61
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614.23
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19
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Provision for tax
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50.44
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52.45
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-4
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139.70
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131.51
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6
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186.25
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155.74
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20
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PAT
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149.97
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155.95
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-4
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415.36
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391.02
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6
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547.36
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458.49
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19
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EPS*(Rs)
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34.6
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35.9
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31.9
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30.0
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31.5
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26.4
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Adj BV (Rs)
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196.1
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162.2
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196.1
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162.2
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171.7
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137.3
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* Annualized on current equity of
Rs 173.54 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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