|
CSB Bank has reported 4% growth in
net profit at Rs 138.41 crore for the quarter ended September 2024 (Q2FY2025).
The bank has posted 7% growth in net interest income (NII), while the core fee
income of the bank improved 28% in Q2FY2025. The Net Interest Margin (NIM) of
the bank declined to 4.30% in Q2FY2025 compared to 4.84% in the corresponding
quarter of previous year.
On business front, the bank as has posted 23%
growth in business with strong 20% surge in loan book. The asset quality of the
bank was stable in Q2FY2025. Bank has substantially reduced the credit to
deposit ratio to 84.4% at end September 2024 from 88.3% at end September 2023.
CASA ratio of the bank has declined to 24.1% at end September 2024 from 29.3% at
end September 2023.
Asset quality improves: The bank has maintained
stable asset quality in Q2FY2025.
The fresh slippages of
loans stood at Rs 64 crore in Q2FY2025 compared with 103 crore in previous
quarter and Rs 54 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 17 crore, upgradations at Rs 7 crore and the write-off of loans was
at Rs 12 crore in Q2FY2025.
The standard
restructured loan book of the bank was nil end September 2024.
Provision coverage ratio
was steady at 81.49% at end September 2024 compared to 82.53% a quarter ago and
declined from 91.75% a year ago.
The capital adequacy
ratio of the bank stood at 22.7% with Tier I ratio at 21.4% at end September
2024.
The risk weighted assets
of the bank has increased 24% YoY to Rs 16729 crore end September 2024,
|
Asset Quality
Indicators: CSB Bank
|
|
|
Sep-24
|
Jun-24
|
Mar-24
|
Dec-23
|
Sep-23
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
452.12
|
423.99
|
361.07
|
278.73
|
284.76
|
7
|
25
|
59
|
|
Net NPA (Rs Crore)
|
183.32
|
169.11
|
124.90
|
70.23
|
72.49
|
8
|
47
|
153
|
|
% Gross NPA
|
1.68
|
1.69
|
1.47
|
1.22
|
1.27
|
-1
|
21
|
41
|
|
% Net NPA
|
0.69
|
0.68
|
0.51
|
0.31
|
0.33
|
1
|
18
|
36
|
|
% PCR
|
81.49
|
82.53
|
86.44
|
91.85
|
91.75
|
-104
|
-495
|
-1026
|
|
% CRAR - Basel III
|
22.74
|
23.61
|
24.47
|
22.99
|
23.96
|
-87
|
-173
|
-122
|
|
% CRAR - Tier I -
Basel III
|
21.37
|
22.23
|
23.10
|
21.60
|
22.56
|
-86
|
-173
|
-119
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth:
The business of the bank
has increased 23% YoY to Rs 58711 crore end September 2024, driven by 20% surge
in advances to Rs 26871 crore. Deposits rose 25% to Rs 31840 crore at end
September 2024.
CASA deposits ratio
declines: The
CASA deposits of the bank rose 3% YoY to Rs 7670 crore at end September 2024.
The current account deposits dipped 13% to Rs 1635 crore, while saving account
deposits increased 9% to Rs 6035 crore end September 2024. The CASA ratio
declined to 24.1% at end September 2024 compared to 29.3% at end September
2023, while eased from 24.9% a quarter ago. The term deposits have increased
34% to Rs 24170 crore end September 2024.
Strong loan growth: Advances growth was
driven by retail loans rising 28% YoY to Rs 17337 crore at end September 2024,
while credit to MSME jumped 26% to Rs 3429 crore at end September 2024. The
corporate credit has declined 1% to Rs 6105 crore end September 2024.
Investment book of the bank surged 25% YoY to Rs 8370 crore at end September
2024. The SLR book moved up 19% to Rs 7885 crore, while non SLR book zoomed 635%
to Rs 485 crore at end September 2024. The AFS book jumped 194% to Rs 5096
crore, while HTM book declined 35% to Rs 3109 crore at end September 2024. The
duration of the AFS investment portfolio stood at 4.57 years end September 2024
compared with 1.71 years at end September 2023.
Margins dip: The bank has showed 87
bps YoY jump in cost of deposits to 6.09%, while yield on advances increased 33
bps YoY to 11.21% in Q2FY2025. Thus, the NIM has declined 54 bps YoY to 4.30%.
Branch expansion: The bank has added 8
branches in Q2FY2025, taking overall tally to 802 branches end September 2024.
Book value of the bank stood at Rs
228.5 per share at end September 2024, while the adjusted book value (net of
NNPA and 10% of restructured advances) was Rs 217.9 per share at end September
2024.
Quarterly Performance
Moderate NII growth, as
NIM declines: Bank has recorded 26% increase in the interest earned at Rs 864.85
crore, while interest expenses increased 45% to Rs 497.37 crore in Q2FY2025.
NII improved 7% to Rs 367.48 crore in the quarter ended September 2024.
Healthy growth in the
core fee income: Bank has posted strong 28% growth in core fee income to Rs 170
crore, while the treasury income zoomed 222% to Rs 29 crore, leading to 40% jump
in the overall non-interest income to Rs 199.38 crore in the quarter ended
September 2024.
Stable expenses ratio: The operating expenses
of the bank increased 18% to Rs 366.51 crore, as other expenses moved up 34% to
Rs 181.68 crore, while employee expenses increased 5% to Rs 184.83 crore in
Q2FY2025. Cost to income ratio was nearly stable at 64.7% in Q2FY2025 compared
with 64.1% in Q2FY2024, helping the Operating Profit to increase 15% to Rs 200.35
crore.
Provisions and
contingencies rise: The bank has created provisions of Rs 13.91 crore. The loan loss
provisions were Rs 6 crore and other provisions jumped 63% to Rs 8 crore.
Effective tax rate rose to 25.8% in Q2FY2025 from 25.2% in Q2FY2024. Net Profit rose by 4%
YoY to Rs 138.41 crore during quarter ended September 2024.
Financial Performance
H1FY2025:
Bank has posted 5% decline
in net profit to Rs 251.73 crore in the half year ended September 2024 (H1FY2025).
The net interest income increased 3% to Rs 729.45 crore, while non-interest
income moved up 41% to Rs 371.22 crore, pushing up net total income by 13% to
Rs 1100.67 crore in H1FY2025. The operating expenses increased 19% to Rs 727.83
crore, while provision and contingencies galloped 2309% to Rs 33.97 crore, leading
to 4% decline in profit before tax to Rs 338.87 crore in H1FY2025. The
cost-to-income ratio rose to 66.1% in H1FY2025 compared to 63.3% in H1FY2024.
An effective tax rate rose to 25.7% in H1FY2025 compared to 25.2% in H1FY2024.
The net profit has declined 5% to Rs 251.73 crore in H1FY2025.
|
CSB Bank: Results
|
|
Particulars
|
2409 (3)
|
2309 (3)
|
Var %
|
2409 (6)
|
2309 (6)
|
Var %
|
2403 (12)
|
2303 (12)
|
Var %
|
|
Interest Earned
|
864.85
|
687.34
|
26
|
1696.87
|
1370.83
|
24
|
2927.54
|
2319.65
|
26
|
|
Interest Expended
|
497.37
|
343.65
|
45
|
967.42
|
663.13
|
46
|
1451.13
|
985.81
|
47
|
|
Net Interest Income
|
367.48
|
343.69
|
7
|
729.45
|
707.70
|
3
|
1476.41
|
1333.84
|
11
|
|
Other Income
|
199.38
|
142.54
|
40
|
371.22
|
262.44
|
41
|
584.29
|
315.68
|
85
|
|
Net Total Income
|
566.86
|
486.23
|
17
|
1100.67
|
970.14
|
13
|
2060.70
|
1649.52
|
25
|
|
Operating Expenses
|
366.51
|
311.60
|
18
|
727.83
|
614.08
|
19
|
1280.78
|
942.12
|
36
|
|
Operating Profits
|
200.35
|
174.63
|
15
|
372.84
|
356.06
|
5
|
779.92
|
707.40
|
10
|
|
Provisions &
Contingencies
|
13.91
|
-3.33
|
-518
|
33.97
|
1.41
|
2309
|
18.48
|
-26.21
|
-171
|
|
Profit Before Tax
|
186.44
|
177.96
|
5
|
338.87
|
354.65
|
-4
|
761.44
|
733.61
|
4
|
|
Provision for tax
|
48.03
|
44.79
|
7
|
87.14
|
89.26
|
-2
|
194.62
|
186.25
|
4
|
|
PAT
|
138.41
|
133.17
|
4
|
251.73
|
265.39
|
-5
|
566.82
|
547.36
|
4
|
|
EPS*(Rs)
|
31.9
|
30.7
|
|
29.0
|
30.6
|
|
32.7
|
31.5
|
|
|
Adj BV (Rs)
|
217.9
|
187.2
|
|
217.9
|
187.2
|
|
201.9
|
171.7
|
|
|
* Annualized on current equity of
Rs 173.54 crore. Face Value: Rs 10, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|