CSB Bank spurts as SBI Funds get RBI nod for hiking stake

CSB Bank jumped 4.57% to close at Rs 193.20 after SBI Funds received the Reserve Bank of India's approval to hike stake in the private lender.

CSB Bank on Friday (24 July) said that the Reserve Bank of India, vide letter dated 22 July 2020, has conveyed its approval to SBI Funds Management to acquire shares up to 10% of the paid up capital of CSB Bank through various schemes of 'SBI Mutual Fund.'

The approval stands valid till 21 July 2021. SBI Funds Management through various schemes of SBI Mutual Fund is currently holding 4.734% in the paid up capital of CSB Bank.

CSB Bank reported a net loss of Rs 59.68 crore in Q4 FY20, significantly lower than the net loss of Rs 150.64 crore reported in Q4 FY19. Total income rose 18.9% to Rs 475.49 crore in Q4 March 2020 from Rs 399.87 crore in Q4 March 2019. The bank also made a tax provision of Rs 82.35 crore in the recent quarter.

On the asset quality front, Gross non-performing assets (NPAs) stood at Rs 409.43 crore as on 31 March 2020 as against Rs 352.63 crore as on 31 December 2019 and Rs 530.62 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 3.54% as on 31 March 2020 as against 3.22% as on 31 December 2019 and 4.87% as on 31 March 2019. The ratio of net NPAs to net advances stood at 1.91% as on 31 March 2020 as against 1.98% as on 31 December 2019 and 2.27% as on 31 March 2019. Provisions and contingencies declined 55.7% to Rs 84.32 crore in Q4 March 2020 from Rs 190.55 crore in Q4 March 2019.

CSB Bank is an Indian private sector bank with its headquarters at Kerala, India.

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