CSB Bank shares tumble 8% as Q1 NIM narrows; stock down 18% in 3 days

CSB Bank shares fell 8 per cent after the lender's net interest margin (NIM) narrowed in the June quarter

Shares of CSB Bank plunged over 8 per cent on Thursday after the lender's net interest margin (NIM) narrowed in the June quarter of the financial year 2026 (Q1FY26), taking the three-day fall to nearly 20 per cent. 

 

The lender's stock fell as much as 8.5 per cent during the day to ₹352.2 per share, the biggest intraday fall since July 21 this year. The stock pared losses to trade 3.65 per cent lower at ₹371 apiece, compared to a 0.16 per cent advance in Nifty 50 as of 1:07 PM. 

 

Shares of the company fell for the third straight day, falling as much as 18.5 per cent in the process. The stock currently trades at over 7.1 times the average 30-day trading volume, according to Bloomberg. The counter has risen 18.5 per cent this year, compared to a 4.2 per cent advance in the benchmark Nifty 50. CSB Bank has a total market capitalisation of ₹6,436.32 crore.  

 

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CSB Bank Q1 results 

Thrissur-based lender reported a 5 per cent rise in net profit for the first quarter of FY26 at ₹119 crore, compared to ₹113 crore in Q1 FY25. The bank’s net interest income (NII) rose 5 per cent year-on-year to ₹379 crore from ₹362 crore.

 

Gross non-performing assets (NPAs) stood at 1.84 per cent as on June 30, compared to 1.69 per cent in the corresponding period last year. Net NPAs were at 0.66 per cent, marginally lower than 0.68 per cent a year ago. However, the bank’s net interest margin for the quarter narrowed to 3.54 per cent from 4.36 per cent in Q1 FY25.

 

Total deposits grew 20 per cent year-on-year to Rs 35,935 crore in Q1 FY26, from Rs 29,920 crore a year earlier. The current account and savings account (CASA) ratio stood at 23 per cent during the quarter. 

CSB Bank management commentary

"The quarter marked a pivotal milestone of our successful CBS migration, along with the rollout of fifty-plus surround systems, thus enhancing our capabilities manifold," said Pralay Mondal, managing director and chief executive officer. 

 

"As the complexity and dimensions of the tech transformation we undertook were huge, the entire CSB team’s priority during the quarter was on stabilising it and reaping the benefits subsequently. Despite these challenging times, we had a decent quarter in terms of growth and profitability."