CSB Bank reported a 27% year-on-year increase in net profit to ₹150 crore for the quarter ended June 30, 2026. The bank's total deposits grew by 26% to ₹45,415 crore, while net advances rose 24% to ₹40,309 crore, supported by robust growth in gold loans and wholesale banking. Asset quality showed a mixed trend on a sequential basis, with Gross NPAs rising to 1.75% from 1.66% quarter-on-quarter, while Net NPAs improved marginally to 0.39% from 0.40% QoQ.

Financial Performance

The bank's Net Interest Income (NII) grew by 26% YoY to ₹479 crore, while non-interest income stood at ₹229 crore. Operating profit rose by 14% YoY to ₹251 crore. Provisions and contingencies for the quarter were recorded at ₹49 crore, rising from ₹23 crore in the previous quarter on a sequential basis. The following table summarises the key financial metrics:

Asset Quality and Ratios

On a year-on-year basis, Gross NPAs improved to 1.75% as of June 30, 2026, from 1.84% a year ago. However, on a sequential basis, Gross NPAs edged higher from 1.66% in the previous quarter. Net NPAs showed improvement both year-on-year — declining from 0.66% in Q1FY26 — and quarter-on-quarter, easing from 0.40% to 0.39%. The Capital Adequacy Ratio (Basel-III) stood at 19.96%, compared to 21.71% reported in the corresponding quarter of the previous year. The bank's Return on Assets (annualised) improved to 1.09% from 1.01% in Q1FY26.

Operational Highlights

The Cost Income Ratio stood at 64.55% for Q1 FY27 compared to 64.70% for Q1 FY26. The CASA ratio stood at 19% as on June 30, 2026. Gold loans grew by 47% YoY to ₹21,906 crore, while wholesale banking advances grew by 37% YoY. The bank's Net Interest Margin (NIM) was at 3.66% during Q1 FY27.

Regulatory Disclosures

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors on July 22, 2026. The bank transferred funds from the Investment Fluctuation Reserve to General Reserve during the quarter, following an RBI direction dated May 18, 2026.

csb bank has granted 61,565 stock options to an eligible employee under its CSB Employee Stock Option Scheme 2019. The options are exercisable into an equal number of fully paid-up equity shares with a face value of ₹10 each. The exercise price is fixed at ₹370.00 per share, determined based on the closing price on the National Stock Exchange of India Limited (NSE) on July 21, 2026, the trading day preceding the grant approval.

The grant was approved by the Bank's Nomination & Remuneration Committee during its meeting on July 22, 2026. The Scheme was formulated pursuant to the SEBI (Share Based Employee Benefits) Regulations, 2014, which have since been replaced by the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The meeting commenced at 08:30 a.m. and concluded at 08:55 a.m.

Vesting Schedule

The options will vest in four equal installments, contingent upon the completion of specific tenure periods from the grant date. The vesting structure is designed to incentivize long-term retention.

Exercise Terms

Beneficiaries can exercise the options within three years from the date of vesting while continuing their employment or service with the Bank. In the event of separation, the exercise period will be governed by the specific terms outlined in the Scheme. All other significant terms of the grant remain consistent with the provisions of the CSB Employee Stock Option Scheme 2019.