CSB Bank's net profit increased by 72.1% to Rs 118.57 crore on a 8.1% rise in total income to Rs 555.64 crore in Q2 FY22 over Q2 FY21.
In Q2 FY22, the net interest income (NII) improved by 21.4% to Rs 278.38 crore in from Rs 229.25 crore in Q2 FY21.
Operating profit rose by 25.3% to Rs 149.38 crore in the second quarter from Rs 119.03 crore recorded in the same period last year.
The bank wrote back provision worth Rs 9.07 crore in Q2 FY22. It had provisions of Rs 26.94 crore in Q2 FY21.
Profit before tax in Q2 FY22 stood at Rs 158.45 crore, up by 72.1% from Rs 92.09 crore in Q2 FY21.
On the asset quality front, the gross non-performing assets were at Rs 586.83 crore as of 30 September 2021 as against Rs 686.39 crore reported on 30 June 2021 and Rs 387.42 crore as of 30 September 2020.
The gross NPA ratio was 4.11% as of 30 September 2021 as compared with 4.88% as on 30 June 2021 and 3.04% as of 30 September 2020.
The net NPA ratio was 2.63% as of 30 September 2021 as against 3.21% reported on 30 June 2021 and 1.30% as of 30 September 2020.
The bank said that with the opening up of the economy, positive trends are visible in the asset quality front. Out of the gross NPA of Rs 586.83 crore, Rs 287.52 crore is gold NPA where the recoverability is almost assured. The bank's gross NPA excluding gold as on 30 September 2021 is lower than the position as on 30 June 2021 and 31March 2021.
Capital Adequacy Ratio is at 20.12%, which is well above the regulatory requirement. Leverage ratio is at 8.03% as on 30 September 2021.
Deposits grew by 9.09% YoY to Rs 19,055.49 crore while advanced grew by 12.22% to Rs 14,070.11 crore in Q2 FY22 over Q2 FY21.
CASA ratio stood at 32.60% as on 30 September 2021 as against 29.39% as on 30 September 2020 and 32.19% as on 31March 2021.
C VR Rajendran, managing director & CEO said, For CSB, in terms of profitability, Q2 is a much better quarter than Q1 FY22 and we registered an increase of about 94% sequentially. Lot of good work has gone in managing the portfolio stress both in gold and non- gold portfolios and SMA/NPA levels were kept under control. Though treasury could not contribute much on the other income front, the gap was more or less covered by way of increased PSLC /Bancassurance/Fee incomes.
As the impact of COVID is not fully ascertained, bank decided to continue with the accelerated provisioning policy for stressed and NPA Accounts.
We have experienced the returning of demand in MSME, SME and WSB segments during the last part of the quarter. Visible growth is also happening in Gold loan portfolio.
In terms of growth, we look forward for better traction and results in the third quarter. With the product and process improvements both implemented/proposed, we intend to capture a better share of the retail segment and grow both the retail liabilities and assets.
CSB Bank has a strong base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra. It offers a wide range of products and services to overall customer base of 1.6 million, with particular focus on SME, retail, and NRI customers.
The scrip added 0.34% to end at Rs 306.85 on the BSE today.
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