CSB Bank reports 174% YoY jump in Q1 profit at Rs 53.5 cr; stock zooms 14%

Shares of CSB Bank zoomed 14.4 per cent to Rs 227.85 per share on the BSE on Wednesday after the bank's net profit grew 174.1 per cent on a yearly basis to Rs 53.56 crore in June quarter of FY21, as against Rs 19.54 crore in Q1FY20. In the March quarter of FY20, the bank had incurred net loss of Rs 59.68 crore.

Net interest income (NII) came in at Rs 185.3 crore for the quarter under review, up 40 per cent YoY from Rs 132.4 crore earned in Q1FY20. The bank's operating profit before provisions and contigencies stood at Rs 129,09 crore, clocking a growth of 222 per cent YoY.

The bank set aside provisions worth Rs 57.53 crore in Q1FY21, as against Rs 10.07 crore in the corresponding quarter last year. Sequentially, it declined from Rs 84.32 crore set aside in Q4FY20. Of the total Rs 57 crore, provisions for NPA stood at Rs 13.76 crore.

"The Bank has recognized a 10 per cent provision on loans for which moratorium has been granted and asset classification benefit has been taken at 30 June 2020 in accordance with the Covid-19... For the quarter ended 30 June 2020, the bank has made an additional Covid-19 related provision of Rs 31.30 crore which is more than the provision prescribed by the RBI’s notification dated 17 April 2020. However, the extent to which the Covid-19 pandemic will have an impact on the Bank’s financial performance is dependent on future developments, which are highly uncertain," it said in a statement.

The bank's gross non-performing assets stood at Rs 401.03 crore, mildly lower from Rs 409.43 crore reported in Q4FY20. Net NPA was at Rs 195.24 crore, down from Rs 216.94 crore in Q4FY20. 

At 1:45 pm, the stock was at Rs 225.25 per share, up 13.13 per cent on the BSE. In comparison, the S&P BSE Sensex was at 38,717 level, up 0.49 per cent. 

Since its listing on December 4, 2019, shares of the bank have declined 33.66 per cent on the BSE. In comparison, the benchmark Sensex has dipped 5.6 per cent till Tuesday.