Earnings Review
CSB Bank Q1 net falls sharply QoQ on higher interest spend
This story was originally published at 17:00 IST on 13 August 2025
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--CSB Bank Apr-Jun net profit INR 1.19 bln vs INR 1.13 bln year ago
--CSB Bank Apr-Jun total income INR 12.86 bln vs INR 10.04 bln year ago
--CSB Bank Apr-Jun provisions INR 607.9 mln vs INR 200.6 mln year ago
--CSB Bank gross NPA ratio 1.84% as on Jun 30 vs 1.57% qtr ago
--CSB Bank net NPA ratio 0.66% as on Jun 30 vs 0.52% qtr ago
--CSB Bank Basel III capital adequacy ratio 21.71% as on Jun 30
By Rati Chaphekar
MUMBAI – CSB Bank reported a sharp sequential fall in its net profit for the June quarter, driven mainly by a sequential fall in its other income and an increase in interest cost, even as operating expenses fell from the trailing quarter.
The private sector lender posted a net profit of INR 1.19 billion for the reporting quarter, down 38% sequentially. The lender's net interest income was INR 3.79 billion, up marginally from a quarter ago. The net interest margin of the lender fell to 3.54%, down 82 bps from a year ago. The lender reported other income of INR 2.45 billion, down 36% on quarter. The bank reported a total income of INR 12.86 billion, down 6% on quarter but up 28% on year.
The bank's employee expenses rose nearly 13% to INR 2.21 billion while its other operating expenses fell 24% sequentially to INR 1.83 billion. This took total operating expenses down 7% on quarter to INR 4.04 billion from INR 4.36 billion. The fall in operating expenses also limited the rise in the bank's total expenses to INR 10.65 billion, up a mere 2% from the trailing quarter.
The interest expenses of the bank rose 8.5% from the trailing quarter to INR 6.62 billion. The bank's provisions were flat sequentially at INR 607.9 million but were up three times from the year-ago quarter. The gross non-performing assets of the lender rose 27 bps to 1.84% as on Jun. 30, and net non-performing assets rose to 0.66%, up 14 bps from 0.52% in the year-ago quarter. The bank's Basel III capital adequacy ratio was 21.71% as on Jun. 30, down 190 bps from 23.61% a year ago.
The gross advances of the lender rose 31% on year to INR 329.44 billion from INR 251 billion in the year-ago quarter. Out of the total advances, gold loans account for the highest share of advances, accounting for 45% of the total portfolio. The gold loan portfolio book size of the bank has risen to INR 149.28 billion, up 36% on year. The total disbursments of the lender were INR 120.88 billion, up 18% on year. The bank's total deposits rose to INR 359.35 billion, up 20% on year.
Wednesday, shares of CSB Bank ended at INR 385.10 on the National Stock Exchange, down 5.2% from the previous day. The company announced its earnings during market hours. End.
Edited by Saji George Titus
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