CSB Bank Q3 results: Profit falls 4% to Rs 150 crore; gross NPAs down 1.2%

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

Kerala-based CSB Bank on Monday announced a 4 per cent dip in net profit for the third quarter of Financial Year 2023-24 (Q3 FY24) to Rs 150 crore, compared to Rs 156 crore it made in the same quarter in FY23.

The private sector bank’s net interest income in Q3 FY24 stood at Rs 383 crore, an increase of 9 per compared to over Rs 350 crore in Q3 FY23. Gross non-performing assets (NPAs) declined to 1.22 per cent compared to 1.27 per cent in Q2 FY23. The decline was 1.45 per cent in Q3 FY23. Net NPA dipped to 0.31 per cent in Q3 FY24 from 0.42 per cent in the same period 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 YoY (year-on-year) basis whereas the industry grew by 13 per cent,” said Pralay Mondal, managing director and chief executive officer of CSB Bank.

In Q3 FY24, the bank’s deposits grew as 21 per cent to Rs 27,344.83 crore compared to Rs 22,664.02 crore in Q3 FY23. “On the advance front (net) we registered a growth of 23 per cent vis a vis 16 per cent industry (without merger). Gold, retail, gold, and SME did well in the quarter with a YoY growth of 23 per cent, 44 per cent and 28 per cent respectively. Effective fund management duly factoring the cost considerations helped us to maintain a NIM of above 5 per cent for Q3,” Mondal said.

Non-interest income in Q3 FY24 was at Rs 125.34 crore, rising 39 per cent compared to Rs 89.90 crore in the same period last year. The bank’s advances (net) grew by 23 per cent from Rs 18,457 crore last fiscal to Rs 22,658 crore as on December 2023.