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.”
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.