CSB Bank Q3 net up 5% to Rs 156 cr on strong growth in deposits and loans

Total income rises to Rs 682 crore from Rs 580 a year ago. Asset quality improves

Kerala-based CSB Bank has posted a rise of 5 per cent in net profit for the third quarter of the financial year ended December 2022, to Rs 156 crore, from Rs 148 crore in the same period of FY22.

The lender's total income rose to Rs 681.95 crore from Rs 579.81 a year ago. Its asset quality improved sequentially, with gross NPA and net NPA ratios going down to 1.45 per cent and 0.42 per cent respectively. In absolute value, gross NPA was seen at Rs 271.29 crore, as compared to Rs 291.04 crore during the preceding quarter this fiscal. Similarly, net NPA was also seen down at Rs 77.66 crore in Q3, as against Rs 98.86 crore in the second quarter of FY23.

“Though the global economy has been marred by uncertainties, the Indian financial system is resilient, robust and stable. Bank credit is growing in double digits for nine months now. It gives us great pleasure to announce that we could outperform the industry trends in terms of the growth in both deposits and advances, and record strong bottom line numbers,” said Pralay Mondal, Managing Director and chief executive officer of the bank.

“Our bank has achieved another milestone, with the business numbers crossing Rs 40,000 crore--Rs 42,006 crore to be exact--contributed by the loan book growth of 26 per cent YoY and 19 per cent deposit growth. In terms of profitability, despite lower treasury profits/PSLC income, SR write-offs etc, the Q3FY 23 operating profit grew 31 per cent supported by growth in NII and other income. Key indicators like NIM, CRAR, RoA, and NPA ratios continue to be strong,” he added.

In Q3FY23, the bank's net interest income (NII) stood at Rs 350 crore as against Rs 303 crore in Q3 FY22, up 15 per cent. Total Deposits grew by 19 per cent YoY. The CASA book grew from Rs 6,587 crore to Rs 7,126 crore YoY (Up 8 per cent). The CASA ratio was 31.44 per cent as of December 2022.