Results - Analysis
Loan growth strong at 30%, asset quality improves
CSB Bank has reported 26% growth in net profit at Rs 190.44 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted 4% decline in net interest income (NII), while the core fee income of the bank surged 84% in Q4FY2025. The Net Interest Margin (NIM) of the bank dipped to 3.75% in Q4FY2025 compared to 5.09% in the corresponding quarter of previous year. On business front, the bank as has posted 27% growth in business with strong 30% surge in loan book. The asset quality of the bank improved in Q4FY2025. Bank has raised the credit to deposit ratio to 86.4% at end March 2025 from 82.7% at end March 2024. CASA ratio of the bank has declined to 24.2% at end March 2025 from 27.2% at end March 2024.
Asset quality improves: The bank has exhibited an improvement in the asset quality in Q4FY2025.
The fresh slippages of loans stood at Rs 94 crore in Q4FY2025 compared with 62 crore in previous quarter and Rs 122 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 29 crore, upgradations at Rs 7 crore and the write-off of loans was at Rs 18 crore in Q4FY2025. Provision coverage ratio rose to 83.71% at end March 2025 compared to 81.47% a quarter ago and eased from 86.44% a year ago. The capital adequacy ratio of the bank stood at 22.5% with Tier I ratio at 20.6% at end March 2025. The risk weighted assets of the bank has increased 28% YoY to Rs 19460 crore end March 2025,| Asset Quality Indicators: CSB Bank | |||||||
| ' | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Mar-24 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 498.46 | 458.17 | 452.12 | 423.99 | 361.07 | 9 | 38 |
| Net NPA (Rs Crore) | 163.53 | 182.71 | 183.32 | 169.11 | 124.90 | -10 | 31 |
| % Gross NPA | 1.57 | 1.58 | 1.68 | 1.69 | 1.47 | -1 | 10 |
| % Net NPA | 0.52 | 0.64 | 0.69 | 0.68 | 0.51 | -12 | 1 |
| % PCR | 83.71 | 81.47 | 81.49 | 82.53 | 86.44 | 224 | -273 |
| % CRAR - Basel III | 22.46 | 21.08 | 22.74 | 23.61 | 24.47 | 138 | -201 |
| % CRAR - Tier I - Basel III | 20.59 | 19.73 | 21.37 | 22.23 | 23.10 | 86 | -251 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
Business Highlights:
Healthy business growth: The business of the bank has increased 27% YoY to Rs 68703 crore end March 2025, driven by 30% surge in advances to Rs 31842 crore. Deposits increased 24% to Rs 36861 crore at end March 2025.
CASA deposits ratio declines yoy, steady qoq: The CASA deposits of the bank increased 10% YoY to Rs 8918 crore at end March 2025. The current account deposits moved up 11% to Rs 2316 crore, while saving account deposits also increased 10% to Rs 6602 crore end March 2025. The CASA ratio declined to 24.2% at end March 2025 compared to 27.2% at end March 2024, while rose slightly from 24.1% a quarter ago. The term deposits have increased 29% to Rs 27943 crore end March 2025.
Strong loan growth: Advances growth was driven by retail loans rising 32% YoY to Rs 20327 crore at end March 2025, while credit to MSME jumped 33% to Rs 4241 crore at end March 2025. The corporate credit has also increased 22% to Rs 7274 crore end March 2025.
Investment book of the bank increased 51% YoY to Rs 11389 crore at end March 2025. The SLR book moved up 48% to Rs 10875 crore, while non SLR book surged 141% to Rs 514 crore at end March 2025. The AFS book zoomed 445% to Rs 7263 crore, while HTM book declined 37% to Rs 3819 crore at end March 2025. The duration of the AFS investment portfolio stood at 5.18 years end March 2025 compared with 3 years at end March 2024.
Margins dip: The bank has showed 59 bps YoY jump in cost of deposits to 6.32%, while yield on advances declined 79 bps YoY to 10.98% in Q4FY2025. NIM dipped 134 bps YoY to 3.75% in Q4FY2025.
Branch expansion: The bank has added 22 branches and 14 ATMs in Q4FY2025, taking overall tally to 829 branches and 791 ATM`s end March 2025.
Book value of the bank stood at Rs 249.0 per share at end March 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 239.6 per share at end March 2025.
Quarterly Performance
NII decline as NIM dip: Bank has recorded 23% increase in the interest earned at Rs 980.89 crore, while interest expenses increased 49% to Rs 609.62 crore in Q4FY2025. NII fell 4% to Rs 371.27 crore in the quarter ended March 2025.
Healthy growth in the core fee income: Bank has posted strong 84% growth in core fee income to Rs 331 crore, while the treasury income zoomed 200% to Rs 51 crore, leading to 94% surge in the overall non-interest income to Rs 381.47 crore in the quarter ended March 2025.
Expenses ratio improves: The operating expenses of the bank increased 23% to Rs 435.99 crore, as other expenses moved up 46% to Rs 239.65 crore, while employee expenses increased 3% to Rs 196.34 crore in Q4FY2025. Cost to income ratio improved to 57.9% in Q4FY2025 compared with 60.9% in Q4FY2024, helping the Operating Profit to increase 39% to Rs 316.75 crore.
Provisions and contingencies jump: The bank has showed 179% surge in provisions to Rs 60.21 crore. The loan loss provisions galloped 717% to Rs 49 crore, while other provisions fell 31% to Rs 11 crore. PBT increased 24% to Rs 256.54 crore in Q4FY2025.
Effective tax rate declined to 25.8% in Q4FY2025 from 26.6% in Q4FY2024. Net Profit rose by 26% YoY to Rs 190.44 crore during quarter ended March 2025.
Financial Performance FY2025:
Bank has posted 5% increase in net profit to Rs 593.80 crore in the nine months ended March 2025 (FY2025). The net interest income was flat at Rs 1476.17 crore, while non-interest income moved up 66% to Rs 972.06 crore, pushing up net total income by 19% to Rs 2448.23 crore in FY2025. The operating expenses increased 20% to Rs 1537.99 crore, while provision and contingencies galloped 499% to Rs 110.71 crore, allowing profit before tax to increase 5% to Rs 799.53 crore in FY2025. The cost-to-income ratio rose to 62.8% in FY2025 compared to 62.2% in FY2024. An effective tax rate moved up slightly to 25.7% in 9MFY2025 compared to 25.6% in 9MFY2024. The net profit has increased 5% to Rs 593.80 crore in 9MFY2025.| CSB Bank: Results | ||||||
| Particulars | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 980.89 | 794.87 | 23 | 3597.14 | 2927.54 | 23 |
| Interest Expended | 609.62 | 408.84 | 49 | 2120.97 | 1451.13 | 46 |
| Net Interest Income | 371.27 | 386.03 | -4 | 1476.17 | 1476.41 | 0 |
| Other Income | 381.47 | 196.51 | 94 | 972.06 | 584.29 | 66 |
| Net Total Income | 752.74 | 582.54 | 29 | 2448.23 | 2060.70 | 19 |
| Operating Expenses | 435.99 | 354.54 | 23 | 1537.99 | 1280.78 | 20 |
| Operating Profits | 316.75 | 228.00 | 39 | 910.24 | 779.92 | 17 |
| Provisions & Contingencies | 60.21 | 21.60 | 179 | 110.71 | 18.48 | 499 |
| Profit Before Tax | 256.54 | 206.40 | 24 | 799.53 | 761.44 | 5 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 256.54 | 206.40 | 24 | 799.53 | 761.44 | 5 |
| Provision for tax | 66.10 | 54.94 | 20 | 205.73 | 194.62 | 6 |
| PAT | 190.44 | 151.46 | 26 | 593.80 | 566.82 | 5 |
| EPS*(Rs) | 43.9 | 34.9 | ' | 34.2 | 32.7 | ' |
| Adj BV (Rs) | 239.6 | 201.9 | ' | 239.6 | 201.9 | ' |
| * Annualized on current equity of Rs 173.54 crore. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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