CSB Bank Limited has announced the grant of stock options to its whole-time directors under the CSB Employee Stock Option Scheme 2019. The board committee approved granting 1,33,831 stock options to whole-time directors at an exercise price of ₹388.70 per share.

Stock Option Grant Details

The committee has approved the grant of 1,33,831 stock options to the whole-time directors of the bank. These options are exercisable into an equal number of equity shares with a face value of ₹10.00 each, fully paid-up.

Vesting Schedule

The granted stock options will vest over a four-year period starting December 2026.

Exercise Period and Regulatory Compliance

The exercise period for continuing employees will be within three years from the date of vesting. In cases of separation, the exercise period will be as per the scheme provisions.

Corporate Governance

This announcement was made in compliance with relevant regulations and has been made available on the bank's website at www.csb.co.in .

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:

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.