CSB Bank PAT up 20% on strong gold loan growth, asset quality improves

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CSB Bank Today it recorded a 20 per cent YoY increase in its net profit for the fourth quarter of FY23 to Rs 156 crore, flat on a quarterly basis. For FY23, profit after tax was Rs. 547 crore, higher by 19 per cent.

Net advances increased by 31 per cent YoY and 12 per cent QoQ to Rs 20,651 crore mainly supported by gold loan portfolio growth of 48 per cent YoY, said a statement.

Net Interest Income (NII) for the quarter was INR 349 ​​crore, by 15 percent on an annual basis and flat in quarter. For FY23, NII was Rs.1,334 crore, up by 16 per cent.

The private sector lender continued to make accelerated provisioning during the quarter, the bank said in a statement, adding that the entire outstanding balance of security receipts had been provided as of March 31.

The bank’s overall NPA ratio improved to 1.3 percent at the end of March, from 1.5 percent a quarter ago and 1.8 percent a year ago. The net NPA rate at 0.4 percent was flat from the prior quarter but better than the 0.7 percent in the prior year.

deposits It grew by 21 per cent YoY and 8 per cent QoQ to INR 24,506 crore. Deposits of current and low-cost savings accounts increased by 16 per cent to Rs. 7,886 crore, accounting for 32 per cent of total deposits.

“We were able to deliver faster than average industry growth trends in both deposits and advances. Although treasury contributions and PSLC revenue were down, operating profit posted 15 percent growth supported by growth in NII and other revenue,” said the managing director and president. Executive Pralay Mondal.

The bank’s capital adequacy ratio was 27.1 percent and the liquidity coverage ratio was 123 percent.

CSB said that FY24 will be a critical year for its “construction phase” as the bank plans significant investments in infrastructure, particularly in technology and geographic expansion.

“As we move forward here, the business segments will benefit from an enhanced support structure that will particularly help in the whole buying out of the retail segments,” Mondal said.