CSB Bank Q2 Results: Profit jumps 10% YoY to Rs 133 crore
CSB Bank on Friday reported a 10% rise in net profit at Rs 133 crore for the September quarter against Rs 121 crore in the year ago period.
The bank recorded its net interest margin for the quarter 76 basis points lower at at 4.84% because of rise in cost of funds.
«I think NIM has bottomed out and will be around 5% for the next few quarters. Cost of fund should sustain at current level,» managing director Pralay Mondal told ET.
The bank's average cost of deposits stood at 5.22% for the quarter.
«We are now taking strides in strengthening the building blocks that will help us in becoming a truly full service franchise.
We are also expanding pan-India to realize this goal,» Mondal said.
The net interest income rose 6% year-on-year at Rs 344 crore while other income was a little over three-times higher at Rs 149 crore.
The bank continued with its accelerated loan provisioning policy with Rs 11 crore against Rs 6.8 crore in the year-ago quarter.
Its cost to income ratio rose to 64.5% while it was 57.5% earlier. «The
increase is mainly on account of significant investments made on people, distribution, systems and processes.
It will gradually come down from FY25 onwards,» the MD said.
Its advances grew by 27% year-on-year to Rs 22256 crore at the end of September, supported by 32% rise in gold loan business. Mondal said that the gold loan expansion could have been more but as gold prices were falling before the intense Israel-Palestine geo-political crisis, the bank put restraint.
«Although gold prices are rising again, but I would like to avoid the risk of lending with high-loan-to-value ratio of over 85%,» he said.
The bank's gross non-performing assets ratio remain flat at 1.27% at the end of September compared
