CSB Bank Q1 results: Net profit drops 14% to Rs 113 cr as provisions rise

Private sector lender CSB Bank posted a 14 per cent year-on-year (Y-o-Y) drop in net profit to Rs 113 crore in Q1 FY25 due to a rise in provisions.

Sequentially, the net profit of the lender dropped by 25.1 per cent from Rs 151 crore in Q4 FY24.

The provisions for non-performing assets rose 273 per cent to Rs 20 crore from Rs 4 crore in Q1 FY24.

The bank’s Net Interest Income (NII) slipped marginally by 0.56 per cent to Rs 361.97 crore in the reported quarter, compared to Rs 364.01 crore in the same quarter a year ago. Sequentially, NII fell by 6.23 per cent from Rs 386.03 crore in Q4 FY24. Interest expenses went up 47 per cent year-on-year to Rs 470 crore.

The bank’s net interest margin (NIM) slipped to 4.36 per cent from 5.40 per cent in Q1 of FY24. Sequentially, NIM was at 5.04 per cent in Q4 of FY24.

Advances grew 18 per cent Y-o-Y to Rs 24,844.01 crore at the end of June 2024, while sequentially, it was up 2 per cent.

Total deposits increased 22 per cent Y-o-Y to Rs 29,920 crore and grew by 1 per cent from Q4 FY24.

The share of low-cost deposits — current account and saving account (CASA) ratio — stood at 24.90 per cent at the end of June 2024, down from 30.8 per cent a year ago. Sequentially, it slipped from 27.20 per cent at the end of March 2024.

During the quarter under review, the credit to deposit (CD) ratio of the bank was at 83.89 per cent compared to 87.05 per cent in Q1 FY24. Sequentially, it was up from 82.68 per cent in Q4 FY24.

Its gross non-performing asset ratio (GNPA) rose to 1.69 per cent in June 2024 from 1.27 per cent a year ago. Sequentially, it was higher than 1.47 per cent in March 2024. Net NPA ratio increased to 0.68 per cent in the quarter under review from 0.32 per cent in the year-ago period. Sequentially, net NPAs were up from 0.51 per cent in March 2024.