The Board of Directors of CSB Bank took on record the financial results for the quarter (Q2 FY 2025) and half year ended 30.09.2024 (H1 FY 2025) which were subject to limited review in their meeting held on 24.10.2024
Highlights
a) Total Deposits grew by 25% YoY from ₹ 25,438 crore as on 30.09.23 to ₹ 31,840 crore as on 30.09.24. The CASA ratio stood at 24 % as on 30.09.2024.
b) Advance (Net) grew by 20% YoY from ₹ 22,256 crore as on 30.09.2023 to ₹ 26,602 crore as on 30.09.2024 supported by a robust growth of 28% in gold loans on YoY basis
c) Profit after Tax up by 22% QoQ from ₹ 113 crore for Q1 FY25 to ₹ 138 crore for Q2 FY25 and up by 4% YoY from ₹ 133 crore for Q2 FY24. We continue to maintain the accelerated provisioning policy during this quarter as well. Return on Assets and NIM were at 1.50% and 4.30% respectively during Q2 FY25.
d) Operating Profit up by 16% QoQ from ₹ 172 crore for Q1 FY25 to ₹ 200 crore for Q2 FY25 and up by 15% YoY from ₹ 175 crore for Q2 FY24.
e) Net Interest Income (NII) for Q2 FY25 was ₹ 367 Crore as against ₹ 362 Crore in Q1 FY 25 and up 7% YoY from ₹ 344 crore for Q2 FY24.
f) Non-Interest Income up 16% QoQ from ₹ 172 Crore for Q1FY25 to ₹ 199 Crore for Q2 FY 25 and up 40% YoY from ₹ 142 crore for Q2 FY24.
g) Cost Income Ratio is at 65% for Q2 FY25 reduced from 68% for Q1 FY25 as against 64% for Q2 FY24.
The Bank continues to make significant investments in people, distribution, systems & processes in the build phase aimed at creating a strong foundation for the scale that we aspire to achieve for as part of SBS 2030 vision.
h) Robust Capital Structure – Capital Adequacy Ratio is at 22.74%, which is well above the regulatory requirement. CRAR as on 30.09.23 was 23.96%
i) Asset Quality & Provisioning – Gross non-performing assets were at 1.68% as on 30.09.24 as against 1.69% as on 30.06.24 and 1.27% as on 30.09.23
Net non-performing assets were at 0.69% as on 30.09.24 as against 0.68% as on 30.06.24 and 0.33% as on 30.09.23
Performance Highlights:
| (Rs Crore) | Q2 FY25 | Q2 FY24 | YoY (%) | Q1 FY25 | QoQ (%) |
| Interest Income | 865 | 687 | 26% | 832 | 4% |
| Interest Expense | 497 | 344 | 45% | 470 | 6% |
| Net Interest Income | 367 | 344 | 7% | 362 | 2% |
| Other Income | 199 | 143 | 40% | 172 | 16% |
| Net Operating Income | 567 | 486 | 17% | 534 | 6% |
| Total Opex | 367 | 312 | 18% | 361 | 1% |
| Operating Profit | 200 | 175 | 15% | 172 | 16% |
| Provisions other than Tax | 14 | -3 | 518% | 20 | -31% |
| PBT | 186 | 178 | 5% | 152 | 22% |
| Tax | 48 | 45 | 7% | 39 | 23% |
| PAT | 138 | 133 | 4% | 113 | 22% |
| Deposits | 31,840 | 25,438 | 25% | 29,920 | 6% |
| Advances(Net) | 26,602 | 22,256 | 20% | 24,844 | 7% |
| CASA | 7,670 | 7,448 | 3% | 7,449 | 3% |
| Gold | 12,005 | 9,403 | 28% | 10,947 | 10% |
| CASA% | 24.09% | 29.28% | -5% | 24.90% | -1% |
CEO Speak:
Speaking on the Q2 FY 25 performance, Mr. Pralay Mondal, Managing Director & CEO said:
“Both deposits and advance of the bank registered an impressive growth, higher than the growth of the industry and on the expected lines. While deposits grew at a higher rate of 25% YoY, advance growth was at 20% leading to comfortable regulatory ratios viz. CD Ratio, LCR, NSFR etc. Profitability, Asset Quality and Efficiency ratios continue to be robust. While the operating profit grew by 16% on a QoQ basis, the net profit growth was higher at 22%. CRAR is well above the regulatory threshold at 22.74% and the proportion of risk-weighted assets to total assets continues to be low. The prevailing higher interest rates and customer preferences for other investments is resulting in higher cost of deposits thus impacting NIMs across banks. We expect the cost of funds to stabilise over the next few quarters, with a positive impact on the NIM.
The ongoing tech transformation journey is progressing well, and the critical milestones are tracked closely towards right and timely execution. Once the tech stack is ready, it will be a key enabler fast tracking the SBS journey thus taking the bank to the next level.”