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Informist, Monday, Jul. 20, 2026

By Divya Moolayattil

MUMBAI – CSB Bank is expected to report sharp year-on-year growth in net profit in the June quarter due to strong growth in net interest income, according to brokerages tracking the bank. Lower credit costs compared to a year ago are also expected to support the growth in net profit. However, net profit is likely to decline sequentially due to a jump in provisions and higher credit costs compared with the previous quarter.

The Kerala-based lender's net profit is estimated to be INR 1.80 billion in the June quarter, up 51% on year, but down nearly 11% on quarter, according to the average of estimates from three brokerages. The highest estimate for net profit is INR 2.04 billion from YES Securities (India) Ltd. and the lowest is INR 1.65 billion from SMIFS Ltd.

CSB Bank's net interest income is expected to rise over 24% year-on-year and marginally quarter-on-quarter to INR 4.71 billion, according to the average of estimates. The highest estimate for the bank's net interest income is INR 4.85 billion from YES Securities, while the lowest estimate is INR 4.50 billion from Dolat Capital Market Pvt. Ltd.

The bank's gross advances rose 24% on year to INR 408.66 billion as of Jun. 30, while its total deposits grew 26% to INR 454.15 billion. The bank's current account savings account rose 4% on year to INR 88.15 billion.

The growth in advances is driven by gold loans, which may protect the yields to an extent, SMIFS said. The deposit growth was driven by a rise in term deposits, which may lead to higher costs of funds and result in sequential margin contraction. CSB Bank's net interest margin is likely to be in the range of 3.70%-3.78%, a rise of 16–24 bps on year, and a decline of 5-13 bps on quarter, according to estimates by three brokerages. The sequential fall is driven by high funding costs because of the large bulk deposit book. 

The bank's provisions are expected to rise 156% sequentially and fall 3% on year to INR 589 million for the June quarter, according to SMIFS. 

The bank's credit cost is expected to decline 17–25 basis points from a year ago. However, credit costs may rise sharply by 27–34 bps from a quarter ago due to higher slippages in the June quarter, which is likely to weigh on the bottom line sequentially. The fresh slippages in the quarter were driven by supply chain disruptions from the war in West Asia, the residual impact of US tariffs, and a slow recovery in GDP growth, Kotak Securities Ltd. said.

CSB Bank will declare its June quarter earnings Wednesday. Monday, the bank's shares ended 2.1% lower at INR 360.95 on the National Stock Exchange. Shares of the bank are down 8% since it reported its March-quarter earnings on May 4.

Of the four research reports on CSB Bank available with Informist, three have a 'buy' recommendation on the stock with an average target price of INR 487, which is nearly 35% higher than the current market price. One has a 'hold' recommendation with a target price of INR 400.

The following are the Apr-Jun earnings estimates, in INR billion, for CSB Bank from three brokerages, in descending order by the net profit estimate:

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Edited by Shubhayan Bhattacharya

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