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CSB Bank has
reported 3% decline in net profit at Rs 151.46 crore for the quarter ended
March 2024 (Q4FY2024). The bank has posted 11% growth in net interest income
(NII), while the core fee income of the bank also improved 44% in Q4FY2024. The
Net Interest Margin (NIM) of the bank was steady on sequential basis at 5.09% in
Q4FY2024, while declined from 5.38% 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 has witnessed deterioration in Q4FY2024. Bank has reduced
the credit to deposit ratio to 82.7% at end March 2024 from 85.0% at end March
2023. The CASA ratio of the bank has declined to 27.2% at end March 2024 from 32.2%
at end March 2023.
Asset quality hit by
high slippages of loans: The bank has witnessed increase in fresh slippages of loans in
Q4FY2024.
The fresh slippages of
loans stood at Rs 122 crore in Q4FY2024 compared with 36 crore in previous
quarter and Rs 35 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 32 crore, upgradations at Rs 32 crore and the write-off of loans
was at Rs 1 crore in Q4FY2024.
The standard
restructured loan book of the bank was nil end March 2024.
Provision coverage ratio
was steady at 86.44% at end March 2024 compared to 91.85% a quarter ago and 92.11%
a year ago.
The capital adequacy
ratio of the bank stood at 24.5% with Tier I ratio at 23.1% at end March 2024.
The risk weighted assets
of the bank has increased 35% YoY to Rs 15745 crore end March 2024,
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Asset Quality
Indicators: CSB Bank
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|
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Mar-24
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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361.07
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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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30
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38
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Net NPA (Rs Crore)
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124.90
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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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78
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74
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% Gross NPA
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1.47
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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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25
|
21
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% Net NPA
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0.51
|
0.31
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0.33
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0.32
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0.35
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20
|
16
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% PCR
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86.44
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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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-541
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-567
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% CRAR - Basel III
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24.47
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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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148
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-263
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% CRAR - Tier I - Basel
III
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23.10
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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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150
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-277
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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 54291 crore end March 2024, driven by 18% surge in
advances to Rs 24572 crore. Deposits rose 21% to Rs 29719 crore at end March
2024.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 3% YoY to Rs 8085 crore at end March 2024. The
CASA ratio declined to 27.2% at end March 2024 compared to 32.2% at end March
2023, while eased from 27.6% a quarter ago. The term deposits have increased 30%
to Rs 21634 crore end March 2024.
Healthy loan growth: Advances growth was
driven by retail loans rising 26% YoY to Rs 15847 crore at end March 2024, while
credit to MSME jumped 28% to Rs 2769 crore at end March 2024. The corporate
credit has declined 2% to Rs 5956 crore end March 2024.
Investment book of the bank surged 29% YoY to Rs 7551 crore at end March 2024. The
SLR book moved up 37% to Rs 7338 crore, while non SLR book declined -58% to Rs 213
crore at end March 2024. The AFS book rose 6% to Rs 1334 crore, while HTM book jumped
31% to Rs 6021 crore at end March 2024. The duration of the AFS investment
portfolio stood at 3 years end March 2024 compared with 0.37 years at end March
2023.
Margins steady qoq,
declines yoy: The bank has showed 88 bps YoY jump in cost of deposits to 5.73%, while
yield on advances increased 60 bps YoY to 11.77% in Q4FY2024. Thus, the NIM has
declined 29 bps YoY to 5.09% in Q4FY2024.
Branch expansion: The bank has added 32 branches
and 161 ATMs in Q4FY2024, taking overall tally to 779 branches and 731 ATM`s
end March 2024.
Book value of the bank stood at Rs 209.0
per share at end March 2024, while the adjusted book value (net of NNPA and 10%
of restructured advances) was Rs 201.9 per share at end March 2024.
Quarterly Performance
NII rises on stable NIM
and healthy loan growth: Bank has recorded 25% increase in the interest earned at Rs 794.87
crore, while interest expenses increased 42% to Rs 408.84 crore in Q4FY2024. NII
improved 11% to Rs 386.03 crore in the quarter ended March 2024.
Healthy growth in the
core fee income: Bank has posted strong 44% growth in core fee income to Rs 105 crore,
while the forex income surged 140% to Rs 6 crore. Further, the treasury income galloped
121% to Rs 17 crore, supporting 56% surge in the overall non-interest income to
Rs 196.51 crore in the quarter ended March 2024.
Expenses ratio rises: The operating expenses
of the bank increased 30% to Rs 354.54 crore, as other expenses moved up 38% to
Rs 164.53 crore, while employee expenses increased 24% to Rs 190.01 crore in
Q4FY2024. Cost to income ratio increased to 60.9% in Q4FY2024 compared with 57.4%
in Q4FY2023. The Operating Profit increased 13% to Rs 228.00 crore.
Provisions and
contingencies rises: The bank has showed increase in provisions to Rs 21.60 crore. The
loan loss provisions were at Rs 6 crore and other provisions jumped 91% yoy to
Rs 16 crore.
Effective tax rate rose to 26.6% in Q4FY2024 from 25.9% in Q4FY2023. Net Profit declined by -3%
YoY to Rs 151.46 crore during quarter ended March 2024.
Financial Performance
FY2024
Bank has posted 4% increase
in net profit to Rs 566.82 crore in the year ended March 2024 (FY2024). The net
interest income increased 11% to Rs 1476.41 crore, while non-interest income
moved up 85% to Rs 584.29 crore, pushing up net total income by 25% to Rs 2060.70
crore in FY2024. The operating expenses increased 36% to Rs 1280.78 crore, while
provision and contingencies galloped to Rs 18.48 crore, allowing profit before
tax to increase only 4% to Rs 761.44 crore in FY2024. The cost-to-income ratio increased
to 62.2% in FY2024 compared to 57.1% in FY2023. An effective tax rate was
steady at 25.6% in FY2024 compared to 25.4% in FY2023. The net profit has rose 4%
to Rs 566.82 crore in FY2024.
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CSB Bank: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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794.87
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636.49
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25
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2927.54
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2319.65
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26
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Interest Expended
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408.84
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288.05
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42
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1451.13
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985.81
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47
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Net Interest Income
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386.03
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348.44
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11
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1476.41
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1333.84
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11
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Other Income
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196.51
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125.99
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56
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584.29
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315.68
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85
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Net Total Income
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582.54
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474.43
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23
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2060.70
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1649.52
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25
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Operating Expenses
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354.54
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272.55
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30
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1280.78
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942.12
|
36
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Operating Profits
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228.00
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201.88
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13
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779.92
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707.40
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10
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Provisions &
Contingencies
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21.60
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-9.20
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-335
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18.48
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-26.21
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-171
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Profit Before Tax
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206.40
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211.08
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-2
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761.44
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733.61
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4
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Provision for tax
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54.94
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54.74
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0
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194.62
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186.25
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4
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PAT
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151.46
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156.34
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-3
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566.82
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547.36
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4
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EPS*(Rs)
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34.91
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36.04
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32.66
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31.54
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Adj BV (Rs)
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201.85
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171.71
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201.85
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171.71
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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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