CSB Bank Q4 Results: Net profit drops marginally to Rs 152 crore on higher provisions
CSB Bank on Friday reported a marginal fall in net profit for the March quarter at Rs 152 crore, owing to higher provisions to cover credit losses.
It had earned a net profit of Rs 156 crore in the year ago quarter. The bank has made provisions of Rs 22 crore during the quarter against a provision write-back of Rs 9 crore earlier.
Its net interest margin for the quarter was 34 basis points lower at 5.04% against what it was in the year-ago quarter.
The bank's share price nosedived immediately after the quarterly results announcement and closed 4.6% lower at Rs 386.20 on the BSE.
The bank's operating profit however rose 13% year-on-year at Rs 228 crore, backed by 11% higher net interest income at Rs 386 crore and 52% jump in other income at Rs 179 crore.
«Despite the challenges posed by the economic conditions, regulatory changes, liquidity constraints, increased competition etc., we got our priorities right and could post reasonably good numbers,» managing director Pralay Mondal said.
Its asset quality however slipped a bit with gross non-performing assets ratio rising to 1.47% at the end of March from 1.26% a year ago with the slippage ratio rising to 2.2% against 0.76%.
The bank reported a 18% year-on-year rise in advances to Rs 24336 crore, backed by a 22% expansion in gold loan business to Rs 11797 crore.
Its total deposits grew by 21% to Rs 29719 crore.
«We will be strengthening the SME & corporate segments and strive for a better market share without losing our focus on retail including gold,» Mondal
