CSB Bank has announced its financial results for the second quarter (Q2 FY25) and half-year ended September 30, 2024 (H1 FY25), which were approved by the Board of Directors in a meeting on October 24, 2024. The results reflect significant growth in deposits, advances, and profitability, showcasing the bank’s robust financial health and progress toward its long-term goals.
Total Deposits increased by 25% year-on-year (YoY) to ₹31,840 crore as of September 30, 2024, compared to ₹25,438 crore as of the same period last year. The CASA (Current Account Savings Account) ratio stood at 24%. The Net Advances grew by 20% YoY, reaching ₹26,602 crore, bolstered by a 28% growth in gold loans.
Profit After Tax (PAT) rose by 22% quarter-on-quarter (QoQ) to ₹138 crore in Q2 FY25, compared to ₹113 crore in Q1 FY25. Year-on-year, PAT increased by 4% from ₹133 crore in Q2 FY24. The Operating Profit of the bank increased by 16% QoQ to ₹200 crore in Q2 FY25, and by 15% YoY compared to ₹175 crore in Q2 FY24.
Net Interest Income (NII) reached ₹367 crore in Q2 FY25, up from ₹362 crore in Q1 FY25, and up 7% YoY from ₹344 crore in Q2 FY24. Non-Interest Income rose significantly, up 16% QoQ to ₹199 crore and 40% YoY from ₹142 crore in Q2 FY24. The Cost Income Ratio improved to 65% in Q2 FY25, down from 68% in Q1 FY25, but slightly higher than the 64% recorded in Q2 FY24. The Capital Adequacy Ratio (CAR) remained strong at 22.74%, well above the regulatory requirements, although lower than the 23.96% recorded as of September 30, 2023.
The Gross Non-Performing Assets (GNPA) of the bank slightly reduced to 1.68% as of September 30, 2024, compared to 1.69% in June 2024. However, it was higher than the 1.27% recorded in the same period last year. Alongside, the Net Non-Performing Assets (NNPA): Marginally increased to 0.69%, from 0.68% in June 2024 and 0.33% in September 2023.
CSB Bank continues to invest in talent, distribution, and systems as part of its “SBS 2030” vision, which focuses on building a strong foundation for future growth. With a strong capital structure, healthy asset quality, and consistent profitability, CSB Bank remains well-positioned to achieve its long-term strategic goals while delivering value to its stakeholders.
Speaking on the Q2 FY 25 performance, Pralay Mondal, Managing Director & CEO, CSB Bank 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.”
