CSB Bank reported an 88 per cent year-on-year (yoy) jump in net profit at ₹114.52 crore in the first quarter against ₹61 crore in the year ago period on the back of growth in net interest income and a sharp decline in loan loss provisions.

Net interest income was up 16 per cent yoy at ₹311 crore compared to ₹268 crore in the year ago quarter.

Non-interest income declined 23 per cent yoy to ₹55 crore (₹71 crore), mainly because treasury profit was down 54 per cent yoy to ₹10 crore (₹21 crore).

Operating expenses rose 28 per cent yoy to ₹211 crore (₹164 crore).

Net interest margin improved to 5.17 per cent as at June-end 2022, against 5.04 per cent as at June-end 2021.

GNPA position

The GNPA position improved to 1.79 per cent of gross advances as at June-end 2022 against 1.81 per cent as at March-end 2022. The net NPA position improved to 0.60 per cent against 0.68 per cent.

Loan loss provisions dropped 85 per cent yoy to ₹16 crore (₹104 crore).

Advances were up by 17 per cent year-on-year to ₹16,142 crore. Gold loan grew by 26 per cent yoy, per the bank’s statement.

Deposits increased by 9 per cent YoY to ₹20,266 crore. CASA deposits increased to 35.14 per cent of total deposits, against 33.09 per cent.

Pralay Mondal, Managing Director & CEO (Interim) said: “While our Q1 growth in advances has been powered mainly by gold loans, we are now witnessing a spurt in demand for credit from the SME and mid-corporate sectors.

“As in the past, gold loans will continue to be a major focus for the bank. On the other hand, on the retail front, we are on track as per the expansion plans—we have launched a few new verticals, hiring is happening for a few others, product programmes are being rolled out, policy level changes are being made, systems are getting ready, tie ups are in the pipeline and so on.”

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