CSB Bank Transfers 17,629 Shares from ESOS Trust Following Option Exercise

CSB Bank Limited has announced significant developments under its Employee Stock Option Scheme 2019, including the recent transfer of equity shares from its ESOS Trust to eligible employees who exercised their vested stock options.

Recent Share Transfer Activity

On December 15, 2025, the CSB ESOS Trust transferred 17,629 equity shares of CSB Bank Limited to two eligible grantees. This transfer was executed pursuant to the exercise of vested stock options by the employees under the CSB Employee Stock Option Scheme 2019.

Transfer Details	Information
Transfer Date	December 15, 2025
Shares Transferred	17,629 equity shares
Number of Grantees	2 eligible employees
Scheme	CSB Employee Stock Option Scheme 2019

Stock Option Grant to Directors

Earlier, the bank's board committee had approved the grant of stock options to its whole-time directors under the same ESOP scheme. The committee granted 1,33,831 stock options to whole-time directors at an exercise price of ₹388.70 per share.

Grant Parameters	Details
Total Options Granted	1,33,831
Exercise Price	₹388.70 per share
Face Value	₹10.00 per share
Beneficiaries	Whole-time Directors

Vesting and Exercise Framework

The granted stock options follow a structured vesting schedule over a four-year period starting December 2026. The exercise period for continuing employees extends within three years from the date of vesting, while separation cases follow specific scheme provisions.

Regulatory Compliance

Both announcements have been made in compliance with relevant regulations under Regulation 30. The bank has made these disclosures available on its official website at www.csb.bank.in , ensuring transparency with stakeholders and regulatory authorities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+5.40%	+14.91%	+17.39%	+22.72%	+54.55%	+121.92%

CSB Bank has reported a strong financial performance for the second quarter of fiscal year 2026, with significant improvements across key metrics. The bank's strategic focus on diversifying its loan portfolio and enhancing its technological capabilities has contributed to its impressive results.

Financial Highlights

Net Profit: CSB Bank's net profit for Q2 FY2026 stood at INR 160.30 crores, marking a substantial increase of 16% year-on-year (YoY) and 35% quarter-on-quarter (QoQ).
Operating Profit: The bank's operating profit grew by 39% YoY to INR 279.00 crores.
Net Interest Income (NII): NII increased by 15% YoY and 12% QoQ.
Other Income: Other income surged by 75% YoY, constituting 24% of total income.
Net Interest Margin (NIM): NIM improved to 3.81%, up by 27 basis points from the previous quarter.
Return on Assets (ROA): ROA stood at 1.33%, up by 30 basis points QoQ.

Business Growth

CSB Bank has outpaced industry growth in both deposits and advances:

Deposits: Grew by 25% YoY, compared to industry growth of 10%.
Advances: Expanded by 29% YoY, against industry growth of 11.4%.

Asset Quality

The bank's asset quality metrics showed improvement:

Metric	Percentage
Gross Non-Performing Assets (GNPA)	1.81%
Net Non-Performing Assets (NNPA)	0.52%
Provision Coverage Ratio (PCR) with write-offs	84.14%
Provision Coverage Ratio (PCR) without write-offs	71.62%

Capital Adequacy

CSB Bank maintains a strong capital position:

Capital to Risk-weighted Assets Ratio (CRAR): 20.99%
Tier I Ratio: 19.19%

Segment Performance

Gold Loans: Constitute 47% of the advances portfolio.
Wholesale Banking: Grew by 33% YoY, despite a reduction in certain portfolios.
SME Banking: The bank has been cautious in this segment due to ecosystem-related issues.

Technology Transformation

CSB Bank has completed a significant technology transformation, including:

Core Banking System (CBS) migration
Implementation of various surround systems
Ongoing enhancements in OFSAA, OBTFPM, and OBDX

Future Outlook

The bank aims to emerge as a respectable mid-sized bank by FY 2030.
Focus on developing a profitable customer franchise.
Plans to expand retail banking operations from FY2027.
Targeting to maintain gold loans at 25-30% of the total loan portfolio by 2030.

Management Commentary

Pralay Mondal, Managing Director & CEO of CSB Bank, stated, "We have registered an impressive all-around performance on a Y-o-Y as well as Q-o-Q basis, both in terms of top line and bottom line. Our key focus now will be on rolling out the retail journey with the systems and processes in place, as it will enable us to achieve granularity in our portfolio and unlock valuable cross-sell and upsell opportunities."

CSB Bank's strong Q2 FY2026 results demonstrate its ability to capitalize on market opportunities while maintaining robust asset quality and capital adequacy. The bank's strategic initiatives, particularly in technology transformation and portfolio diversification, position it well for sustained growth in the coming years.