CSB Bank , a prominent private sector bank in India, has reported mixed financial results for the first quarter, showcasing growth in key areas while facing challenges in asset quality.

Robust Growth in Interest Income and Advances

The bank witnessed a significant increase in its interest income, which rose to ₹10,409.00 crore, up 25% from ₹8,320.00 crore in the same quarter last year. This growth was primarily driven by a 31% year-on-year expansion in gross advances, which reached ₹32,944.00 crore.

Deposit Growth and CASA Ratio

Total deposits grew by 20% year-on-year to ₹35,935.00 crore. However, the Current Account Savings Account (CASA) ratio stood at 23%, indicating potential room for improvement in low-cost deposits.

Profitability Metrics

CSB Bank's net profit increased by 5% year-on-year to ₹119.00 crore, compared to ₹113.00 crore in the same quarter last year. The operating profit saw a more substantial rise of 28%, reaching ₹220.00 crore.

Asset Quality Concerns

Despite the growth in various segments, the bank faced challenges in maintaining asset quality:

• Gross Non-Performing Assets (GNPA) ratio increased to 1.84% from 1.69% year-on-year.
• Net Non-Performing Assets (NNPA) ratio slightly decreased to 0.66% from 0.68% year-on-year, but increased from 0.52% in the previous quarter.

Other Key Highlights

• Net Interest Income (NII) grew by 5% year-on-year to ₹379.00 crore.
• Non-interest income saw a significant jump of 42% to ₹245.00 crore.
• The Cost to Income ratio improved to 64.70% from 67.69% in the same quarter last year.
• Capital Adequacy Ratio stood at a healthy 21.71%, well above regulatory requirements.

Management Commentary

Pralay Mondal, Managing Director & CEO of CSB Bank, commented on the results: "This quarter is incredibly special for us as it marked a pivotal milestone of our successful CBS migration along with the roll out of fifty plus surround systems, thus enhancing our capabilities manifold and taking us very close to the launch of Scale Phase in our SBS 2030 journey."

He added, "Despite these challenging times, we had a decent quarter in terms of growth and profitability. We could register a growth of 20% in deposits and 31% in gross advances on a YoY basis as at the quarter end."

Future Outlook

The bank remains focused on its SBS 2030 vision, aiming to become a mid-sized new age bank with a national presence by 2030. With the new systems getting stabilized, CSB Bank looks forward to consolidating its performance in the ensuing quarters and working towards achieving bigger milestones.

As CSB Bank navigates through a phase of technological transformation and business growth, investors and stakeholders will be keenly watching how the bank addresses its asset quality challenges while maintaining its growth trajectory in the coming quarters.

CSB Bank , a prominent player in the Indian banking sector, has reported impressive growth in its deposits and advances for the first quarter. The bank's performance highlights its strong position in the market and its ability to attract customers in both deposit and lending segments.

Deposit Growth

CSB Bank witnessed a significant increase in its total deposits during the first quarter. The bank reported:

• Total deposits reached ₹35,990.00 crore, marking a 20% increase
• Term deposits rose by 22% to ₹27,525.00 crore

This growth in deposits indicates strong customer confidence in the bank and its ability to attract funds effectively.

Advances and Loan Portfolio

The bank also showed remarkable growth in its lending activities:

• Gross advances increased by 32% to ₹33,142.00 crore
• Gold loans, a key segment for CSB Bank, grew by 36% to ₹14,928.00 crore

The substantial growth in gold loans underscores the bank's strong presence in this niche market segment.

Performance Overview

To better visualize CSB Bank's Q1 performance, here's a summary of the key metrics:

The bank's growth across various segments demonstrates its robust business model and effective strategies in both deposit mobilization and credit deployment.

CSB Bank's strong performance in deposits and advances, particularly in the gold loan segment, positions it well for continued growth in the competitive banking landscape. The significant increase in both deposits and advances suggests that the bank is successfully expanding its customer base and market share.