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After making healthy Covid-related provisions for standard assets on a proactive basis, the Kerala based CSB Bank has registered ₹54 crore net profit in Q1 of FY 21, the highest quarterly profit declared by the bank. The figure in the corresponding period of the previous fiscal was ₹19.5 crore
CVR Rajendran, Managing Director and CEO, said, “the results of the first quarter underlines the fact that the bank is now well entrenched in earnings growth path despite testing times. We have used to the maximum advantage the TLTRO window of RBI and the results are evident in the improved NIM, which has crossed four per cent. Going forward, the key focus this fiscal will be to grow the gold loan book taking advantage of the relaxations in LTV by RBI while remaining ever vigilant of gold price volatility.”
The operating profit increases from ₹40.1 crore to ₹129.1 crore, an increase of 221.85 per cent. It also registered an increase of 20.66 per cent over Q4 FY 20 due to improved NII and treasury profits.
In Q1 FY21, the bank earned NII of ₹185.3 crore as against ₹132.5 crore with an absolute growth of ₹52.80 crore.
The gross NPA decreased from ₹409 crore as on March 31 to ₹401 crore as on June 30. GNPA was ₹513 crore as on June 30. Net NPA decreased from ₹217 crore as on March 31 to ₹195 crore as on June 30, a decrease of 10 per cent. Capital Adequacy Ratio improves from 16.88 per cent as on June 30, 2019 to 18.93 per cent as on June 30 this year.
The reduction in CRAR from March level of 22.46 per cent is on account of the increased Non- SLR & AFS portfolios. The Liquidity Coverage Ratio at 232 per cent comfortably above the RBI requirement of 80 per cent. Deposits grew by ₹706 crore in April-August 2020, with a healthy growth rate of 4.50 per cent.
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