 "CSB BANK")
Kerala-based private sector lender CSB Bank has posted a 15 per cent rise in net profit during the first quarter of 2023-24 to Rs 132.23 crore, as compared to Rs 114.52 crore during the same period the previous financial year, owing to growth in loan book and deposits.
During the quarter under review, the bank’s total income increased 36 per cent to Rs 805.04 crore from Rs 590.78 crore in the first quarter of 2021-22. The bank’s net interest income also increased by 17 per cent from Rs 310.69 crore in 2021-22 to Rs 364.01 crore during the April to June period of FY23. The bank’s gross non-performing assets (NPAs) declined to 1.27 per cent of gross advances during the quarter. This is compared to 1.79 per cent during the same quarter in FY23. Its net NPA dipped to 0.32 per cent from 0.60 per cent last year.
“On a YoY basis, our net profit was up by 15 per cent backed by a 31 per cent net loan book growth and 21 per cent deposit growth. Our NII registered a robust growth of 17 per cent and non-interest income by a whopping 122 per cent. Despite the increased costs on account of higher investments made on people, distribution, systems etc, the operating profit recorded a growth of 17 per cent supported by growth in NII and other income. Key indicators like NIM, CRAR, RoA, NPA ratios etc. continue to be strong,” said Pralay Mondal, Managing Director and chief executive officer of CSB Bank.
During the period under review, the bank’s deposit growth was 21 per cent to Rs 24,475.52 crore as against Rs 20,266.77 crore last year. The bank’s net interest income (NII) earned for the first quarter was Rs 364.01 crore with a year-on-year increase of 17 per cent, compared to Rs 310.69 crore in Q1 FY 23. Non-Interest Income for Q1 FY 24 was at Rs 121.55 crore as against Rs 54.85 crore for the same period last year, up by 122 per cent.
The bank’s advances (net) grew by 31 per cent to Rs 21,103.55 crore as on June 2023, supported by a robust growth of 42 per cent in gold loans on YOY basis. Gold loan portfolio crossed the Rs 10,000 crore mark during the period. Capital Adequacy Ratio was at 25.99 per cent.
“On the distribution front, as in the previous years, we plan to open another 100 branches this financial year as well. Our efforts will be centered on building a future ready franchise by keeping customer centricity at the core of all our initiatives,” he added.
