CSB Bank Q2 PAT up 179% YoY to Rs 69 cr

The private lender's standalone net profit surged 178.60% to Rs 68.90 crore on 31.66% jump in total income to Rs 567.55 crore in Q2 September 2020 over Q2 September 2019.

Profit before tax (PBT) soared 149.56% to Rs 92.09 crore in Q2 September 2020 as against Rs 36.90 crore in Q2 September 2019. Tax expenses for the quarter spurted 63.65% YoY to Rs 23.19 crore. The Q2 result was declared during trading hours today, 19 October 2020.

The bank's gross non-performing assets (NPAs) stood at Rs 387.42 crore as on 30 September 2020 as against Rs 401.03 crore as on 30 June 2020 and Rs 326.20 crore as on 30 September 2019. The ratio of gross NPAs to gross advances stood at 3.04% as on 30 September 2020 as against 3.51% as on 30 June 2020 and 2.86% as on 30 September 2019. The ratio of net NPAs to net advances stood at 1.30% as on 30 September 2020 as against 1.74% as on 30 June 2020 and 1.96% as on 30 September 2019.

The bank's provisions and contingencies jumped 228.53% to Rs 80.72 crore in Q2 September 2020 over Q2 September 2019. Provision coverage ratio improves to 84.24% as on 30 September 2020 from 81.7% as on 30 June 2020 and 80.0% as on 31 March 2020.

In Q2 FY21, the net interest income (NII) stood at Rs 229.20 crore as against Rs 147 crore in Q2 FY20 with an absolute growth of Rs 82.20 crore or 56% & 23.7% QoQ.

Total deposits grew by 13% YoY and 7% QoQ. CASA ratio stood at 29.4% as on 30 September 2020 as against 28.17% as on 30 September 2019. Net advances grew YoY at 11% and QoQ at 12%. Gold loans grew at 47% YoY and 29% QoQ.

Speaking on the Q2 performance, C V R Rajendran, the managing director (MD) & chief executive officer (CEO) of CSB Bank, said that: "In this centenary year we are happy to announce a half yearly profit of over Rs 100 Cr. Now we are well entrenched on the growth track and have recorded a growth of over 10% in both deposit and advances. We could post improvement in all key metrics: NIM, Cost Income Ratio, RoA, RoE, Gross NPA, Net NPA, PCR, CRAR. We have now set our own benchmarks to be exceeded next quarter. While the asset growth so far has been contributed mostly by gold loan growth, we are committed to diversify the asset base and product suite. New Retail banking team headed by Mr. Praloy is working on the products and processes for these segments and also on the strategies on customer acquisition on a larger scale. These will be in place this quarter end and we will focus on quantum and quality growth in the coming days."

Shares of CSB Bank rose 0.76% to Rs 232.40 on BSE. CSB Bank is an Indian private sector bank with its headquarters at Kerala, India.

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