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Informist, Wednesday, Jan. 28, 2026

By Cassandra Carvalho

MUMBAI – CSB Bank Ltd. Wednesday reported a flat year-on-year growth in net profit for the December quarter due to a surge in provisions. The bank posted a net profit of INR 1.53 billion, up a mere 0.7% from a year ago. Sequentially, the net profit fell 4.8%. The bank's total income rose 26% on year to INR 14.31 billion but fell nearly 2% on quarter. 

The bank's provisions for the December quarter jumped up 425% on year to INR 867.70 million and 36% on quarter. The lender's gross non-performing asset ratio rose to 1.96% as on Dec. 31, from 1.81% as on Sept. 30. Its net non-performing asset ratio was 0.67% as on Dec. 31, up from 0.52% as on Sept. 30. The bank reported its earnings during market hours. On the National Stock Exchange, shares of the bank ended nearly 16% lower at INR 422.30.

"Our asset quality parameters are well within the guided range though at a slightly elevated level from Q2 FY26 (Jul-Sept). This will be a key monitorable going forward and results would be hopefully visible during the current quarter (Jan-Mar) itself," Managing Director and Chief Executive Officer Pralay Mondal was quoted as saying in a press release. "All other profitability, efficiency, liquidity, and capital adequacy ratios continue to be stable and in line with the expectations."

The private sector lender's Basel III capital adequacy ratio stood at 19.41% as on Dec. 31, down from 20.99% as on Sept. 30 and from 21.08% as on Dec. 31, 2024. The lender's provision coverage ratio, including write-offs, was 79.87% as on Dec. 31, down from 84.14% as on Sept. 30 and 81.47% as on Dec. 31, 2024.

Gross advances of the bank rose 29% on year to INR 371.61 billion. Gold loans made up 51% of the bank's gross advances in Oct-Dec, up from 45% a year ago. Share of wholesale loans in the same period rose to 24% from 22% a year ago. Retail loans accounted 13% of total gross advances in Oct-Dec, down from 20% in the year-ago quarter. Total disbursements in the December quarter grew 55% on year to INR 173.58 billion. The bank's gross CD ratio rose to 91.85% as on Dec. 31, from 87.54% as on Sept. 30.

Deposits rose 21% on year to INR 404.60 billion in Oct-Dec. Of this, current account savings account deposits were INR 83.16 billion, down 1% on quarter and up 3% on year. The bank's current account savings account ratio was 21% as on Dec. 31, down from 24% in the year-ago period. Total business of the bank was INR 776.21 billion, up 25% on year.

The bank's net interest income rose 21% on year to INR 4.53 billion. Its net interest margin in Oct-Dec was 3.86%, down from 4.11% in the year-ago period. The bank's net interest margin for the December quarter is the highest in this financial year so far.

For the nine months ended December, the bank posted a net profit of INR 4.32 billion, up 7% from a year ago. The bank's total income for the same period was INR 41.75 billion, up 30.2% from INR 32.07 billion in the year-ago period.  End

Edited by Ashish Shirke

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