CSB Bank Ltd
NSE:CSBBANK
CSB Bank Ltd
CSB Bank Ltd. provides commercial banking services. The company is headquartered in Thrichur, Kerala. The company went IPO on 2019-12-04. The firm through four business segments: Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. The company offers various products and services, including personal banking, non-resident Indian (NRI) banking, Agri/ Financial Inclusion (FI) banking, Small and medium-sized enterprises (SMEs) banking and corporate banking. The firm offers various accounts, such as savings account, current accounts, fixed deposits and safe deposits lockers. The company also offers various loans, including retail loan, two wheeler loans, gold loan and home loan. The company offers various NRI banking solutions, such as Non-Resident Ordinary Accounts (NRO Accounts), Non-Resident (External) Rupee Accounts (NRE), Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR (B) Accounts) and Resident Foreign Currency Accounts (RFC).
CSB Bank Ltd. provides commercial banking services. The company is headquartered in Thrichur, Kerala. The company went IPO on 2019-12-04. The firm through four business segments: Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. The company offers various products and services, including personal banking, non-resident Indian (NRI) banking, Agri/ Financial Inclusion (FI) banking, Small and medium-sized enterprises (SMEs) banking and corporate banking. The firm offers various accounts, such as savings account, current accounts, fixed deposits and safe deposits lockers. The company also offers various loans, including retail loan, two wheeler loans, gold loan and home loan. The company offers various NRI banking solutions, such as Non-Resident Ordinary Accounts (NRO Accounts), Non-Resident (External) Rupee Accounts (NRE), Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR (B) Accounts) and Resident Foreign Currency Accounts (RFC).
Profitability: Quarterly net profit was INR 153 crores, essentially flat year-on-year, while operating profit grew 32% year-on-year to INR 292 crores.
Growth Outperformance: Deposits grew 21% and advances grew 29% year-on-year, both nearly double the industry rate, led by strong wholesale and gold loan segments.
NIM and Margins: NIM improved to 3.86%, the highest for the year, aided by a slight reduction in funding costs. Management expects NIM to remain between 3.7% and 3.9%.
Asset Quality: GNPA rose to 1.96% and NNPA to 0.67%, both still within previous guidance. Most new slippages were in SME, but management is confident of upgrades in coming quarters.
Cost Efficiency: Cost-to-income ratio improved to around 60% but is expected to stay elevated for another year before declining from FY'28.
Capital and Liquidity: Capital adequacy is strong at 19.41%. Liquidity ratios (LCR 114%, NSFR 118%) remain robust.
Outlook: Management guides for continued robust growth in deposits and advances, normalization of asset quality and credit costs, and a focus on scaling up retail and SME as systems mature.
