CSB Bank Q2 Results | Net profit up 4% to ₹138 crore, NII rises 7% to ₹368 crore

CSB Bank Q2 Results  2024 | Private lender CSB Bank Ltd on Thursday (October 24) reported a 4% year-on-year (YoY) increase in net profit at ₹138.4 crore for the second quarter that ended September 30, 2024. In the corresponding quarter of the previous fiscal, CSB Bank posted a net profit of ₹133.2 crore, the bank said in a regulatory filing.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, grows 7%, coming at ₹368 crore against ₹343 crore in the corresponding quarter of FY24.

The gross non-performing asset (GNPA) stood at 1.68% in the September quarter against 1.69% in the June quarter. Net NPA came at 0.69% against 0.68% quarter-on-quarter. Provisions stood at ₹14 crore against ₹20 crore quarter-on-quarter.

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CBS Bank’s total deposits experienced 25% year-on-year growth, rising from ₹25,438 crore as of September 30, 2023, to ₹31,840 crore by September 30, 2024. The bank’s Current Account Savings Account (CASA) ratio stood at 24% as of September 2024.

On the lending front, the bank’s net advances grew by 20% year-on-year, from ₹22,256 crore in September 2023 to ₹26,602 crore in September 2024, driven by a robust 28% growth in gold loans during the same period.

Return on assets (RoA) and net interest margin (NIM) for CBS Bank were recorded at 1.50% and 4.30%, respectively, during Q2 FY25. The bank also reported a 16% quarter-on-quarter rise in operating profit, from ₹172 crore in Q1 FY25 to ₹200 crore in Q2 FY25, marking a 15% year-on-year increase from ₹175 crore in Q2 FY24.

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Non-interest income grew by 16% quarter-on-quarter to ₹199 crore in Q2 FY25 from ₹172 crore in Q1 FY25, reflecting a 40% year-on-year increase from ₹142 crore in Q2 FY24. The bank’s cost-to-income ratio improved to 65% in Q2 FY25 from 68% in Q1 FY25, although it was slightly higher than the 64% recorded in Q2 FY24.

CBS Bank continues to invest heavily in areas such as staffing, distribution channels, and process optimisation, which is in line with its vision for achieving scale under the SBS 2030 strategy. CBS Bank’s Capital Adequacy Ratio (CAR) stood at 22.74% in Q2 FY25, well above regulatory requirements, though it was slightly lower than the 23.96% recorded as of September 2023.

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Shares of CSB Bank Ltd ended at ₹309.70, up by ₹6.80, or 2.24% on the BSE.