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CSB Bank has reported 1% growth in net profit at Rs 151.63 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted 2% decline in net interest income (NII), while the core fee income of the bank has jumped 88% in Q3FY2025. The Net Interest Margin (NIM) of the bank declined to 4.11% in Q3FY2025 compared to 5.10% in the corresponding quarter of previous year.
On business front, the bank as has posted 24% growth in business with strong 26% surge in loan book. The asset quality of the bank was stable in Q3FY2025. Bank has raised credit to deposit ratio to 86.6% at end December 2024 from 83.6% at end December 2023. CASA ratio of the bank has declined to 24.1% at end December 2024 from 27.6% at end December 2023.
Asset quality stable:The bank has maintained stable asset quality in Q3FY2025.
The fresh slippages of loans stood at Rs 62 crore in Q3FY2025 compared with 64 crore in previous quarter and Rs 36 crore in the corresponding quarter last year.
The recoveries of NPAs stood at Rs 29 crore, upgradations at Rs 12 crore and the write-off of loans was at Rs 15 crore in Q3FY2025.
The standard restructured loan book of the bank remained nil end December 2024
Provision coverage ratio was steady at 81.47% at end December 2024 compared to 81.49% a quarter ago and 91.85% a year ago.
The capital adequacy ratio of the bank stood at 21.1% with Tier I ratio at 19.7% at end December 2024.
The risk weighted assets of the bank has increased 27% YoY to Rs 18002 crore end December 2024.
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Asset Quality
Indicators: CSB Bank
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Dec-24
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Sep-24
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Jun-24
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Mar-24
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Dec-23
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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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458.17
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452.12
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423.99
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361.07
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278.73
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1
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27
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64
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Net NPA (Rs Crore)
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182.71
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183.32
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169.11
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124.90
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70.23
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0
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46
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160
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% Gross NPA
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1.58
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1.68
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1.69
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1.47
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1.22
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-10
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11
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36
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% Net NPA
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0.64
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0.69
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0.68
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0.51
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0.31
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-5
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13
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33
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% PCR
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81.47
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81.49
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82.53
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86.44
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91.85
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-2
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-497
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-1038
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% CRAR - Basel III
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21.08
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22.74
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23.61
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24.47
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22.99
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-166
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-339
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-191
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% CRAR - Tier I -
Basel III
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19.73
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21.37
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22.23
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23.10
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21.60
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-164
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-337
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-187
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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 24% YoY to Rs 62322 crore end December 2024, driven by 26% surge in advances to Rs 28915 crore. Deposits rose 22% to Rs 33407 crore at end December 2024.
CASA deposits ratiodeclines: TheCASA deposits of the bank increased 7% YoY to Rs 8042 crore at end December 2024. The current account deposits declined 4% to Rs 1996 crore, while saving account deposits increased 11% to Rs 6046 crore end December 2024. The CASA ratio declined to 24.1% at end December 2024 compared to 27.6% at end December 2023, while remained steady from 24.1% a quarter ago. The term deposits have increased 28% to Rs 25365 crore end December 2024.
Strong loan growth: Advances growth was driven by retail loans rising 32% YoY to Rs 18867 crore at end December 2024, while credit to MSME jumped 56% to Rs 3692 crore at end December 2024. The corporate credit has increased 6% to Rs 6356 crore end December 2024.
Investment book of the bank increased 42% YoY to Rs 10132 crore at end December 2024. The SLR book moved up 37% to Rs 9714 crore, while non SLR book zoomed 410% to Rs 418 crore at end December 2024. The AFS book surged 311% to Rs 6420 crore, while HTM book declined 37% to Rs 3440 crore at end December 2024. The duration of the AFS investment portfolio stood at 4.96 years end December 2024 compared with 2.57 years at end December 2023.
Margins decline: The bank has showed 77 bps YoY jump in cost of deposits to 6.19%, while yield on advances declined 43 bps YoY to 11.06% in Q3FY2025. Thus, the NIM has dipped 99 bps YoY to 4.11%.
Branch expansion: The bank has added 5 branches and 7 ATMs in Q3FY2025, taking overall tally to 807 branches and 777 ATM`s end December 2024.
Book value of the bank stood at Rs 236.3 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 225.8 per share at end December 2024.
Quarterly Performance
NII declines as NIM dip: Bank has recorded 21% increase in the interest earned at Rs 919.38 crore, while interest expenses increased 43% to Rs 543.93 crore in Q3FY2025. NII declined 2% to Rs 375.45 crore in the quarter ended December 2024.
Healthy growth in the core fee income: Bank has posted strong 88% growth in core fee income to Rs 211 crore, while the treasury income declined 37% to Rs 8 crore. The overall non-interest income jumped 75% to Rs 219.37 crore in the quarter ended December 2024.
Expenses ratio rises: The operating expenses of the bank increased 20% to Rs 374.17 crore, as other expenses moved up 28% to Rs 178.04 crore, while employee expenses increased 13% to Rs 196.13 crore in Q3FY2025. Cost to income ratio rose to 62.9% in Q3FY2025 compared with 61.4% in Q3FY2024. The Operating Profit increased 13% to Rs 220.65 crore.
Provisions and contingencies rises: The bank has showed increase in provisions to Rs 16.53 crore. The loan loss provisions were at Rs 7 crore and other provisions were Rs 10 crore.
PBT increased 2% to Rs 204.12 crore in Q3FY2025.
Effective tax rate rose to 25.7% in Q3FY2025 from 25.2% in Q3FY2024. Net Profit rose by 1% YoY to Rs 151.63 crore during quarter ended December 2024.
Financial Performance 9MFY2025:
Bank has posted 3% decline in net profit to Rs 403.36 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 1% to Rs 1104.90 crore, while non-interest income moved up 52% to Rs 590.59 crore, pushing up net total income by 15% to Rs 1695.49 crore in 9MFY2025. The operating expenses increased 19% to Rs 1102.00 crore, while provision and contingencies galloped to Rs 50.50 crore, causing 2% decline in the profit before tax to Rs 542.99 crore in 9MFY2025. The cost-to-income ratio increased to 65.0% in 9MFY2025 compared to 62.7% in 9MFY2024. An effective tax rate rose to 25.7% in 9MFY2025 compared to 25.2% in 9MFY2024. The net profit has declined 3% to Rs 403.36 crore in 9MFY2025.
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CSB Bank: Results
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Particulars
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2412 (3)
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2312 (3)
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Var %
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2412 (9)
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2312 (9)
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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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919.38
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761.83
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21
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2616.25
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2132.67
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23
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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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543.93
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379.16
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43
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1511.35
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1042.29
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45
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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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375.45
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382.67
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-2
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1104.90
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1090.38
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1
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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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219.37
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125.34
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75
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590.59
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387.77
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52
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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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594.82
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508.01
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17
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1695.49
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1478.15
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15
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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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374.17
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312.14
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20
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1102.00
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926.22
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19
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1280.78
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942.12
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36
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Operating Profits
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220.65
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195.87
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13
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593.49
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551.93
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8
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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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16.53
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-4.54
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PL
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50.50
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-3.13
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PL
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18.48
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-26.21
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PL
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Profit Before Tax
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204.12
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200.41
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2
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542.99
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555.06
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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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52.49
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50.44
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4
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139.63
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139.70
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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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151.63
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149.97
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1
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403.36
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415.36
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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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34.9
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34.6
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31.0
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31.9
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32.7
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31.5
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Adj BV (Rs)
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225.8
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196.1
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225.8
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196.1
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201.9
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171.7
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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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