CSB Bank Q3 results: Profit falls 4% to Rs 150 crore; gross NPAs down 1.2%
Kerala-based private sector lender CSB Bank has posted a 4 per cent dip in net profit for the third quarter of the financial year to Rs 150 crore, compared to Rs 156 crore during the October-December quarter of 2023-24.
The bank’s net interest income during the third quarter of this fiscal stood at Rs 383 crore, with an increase of 9 per cent over Rs 350 crore in Q3 of FY23. The bank’s gross non-performing assets (NPAs) declined to 1.22 per cent compared to 1.27 per cent of gross advances during the previous quarter (Q2). This is compared to 1.45 per cent during the same quarter in FY23. Its net NPA dipped to 0.31 per cent from 0.42 per cent last year.
“The last quarter gone by was reasonably stable for us. Our efforts have always been to grow 30 to 50 per cent faster than the system. The liquidity conditions that prevailed in the system did pose some challenges in funds management. We focused more on deposits this quarter and could register a growth of 21 per cent on a year-on-year basis whereas the industry grew by 13 per cent,” said Pralay Mondal, Managing Director and Chief Executive Officer of CSB Bank.
During the period under review, the bank’s deposit growth was 21 per cent to Rs 27,344.83 crore as against Rs 22,664.02 crore last year. “On the advance front (net), we registered a growth of 23 per cent vis-à-vis 16 per cent industry (without merger). Gold, retail, gold, and SME did well in the quarter with a year-on-year growth of 23 per cent, 44 per cent, and 28 per cent respectively. Effective fund management duly factoring in the cost considerations helped us to maintain a Net Interest Margin (NIM) of above 5 per cent for Q3,” Mondal added.
Non-Interest Income for Q3 FY24 was at Rs 125.34 crore as against Rs 89.90 crore for the same period last year, up by 39 per cent. The bank’s advances (net) grew by 23 per cent from Rs 18,457 crore last fiscal to Rs 22,658 crore as of December 2023.
First Published: Jan 29 2024 | 6:35 PM IST