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.

CSB Bank , one of India's oldest private sector banks, has announced significant developments in its board composition and financial performance for the second quarter of fiscal year 2026.

Board Appointment and Reconstitution

The bank's Board of Directors has approved the appointment of Ms. Sheetal Rupesh Sancheti as an Additional Director in the Non-Executive Non-Independent category. This appointment, effective November 5, 2025, comes as a nomination from the bank's promoter, FIH Mauritius Investments Ltd.

Ms. Sancheti brings over two decades of diverse experience in private equity, banking, and audit to her new role. Currently serving as Vice President at Fairbridge Capital Private Limited, she plays a crucial role in monitoring portfolio investments for Fairfax India Holdings Corporation. Her prior experience includes positions at ANZ Bank India, HSBC Bank India, Abu Dhabi Commercial Bank, and BSR & Co.

Following this appointment, CSB Bank has also announced the reconstitution of its Board committees, effective November 6, 2025. This restructuring aims to enhance the bank's governance framework and align with its strategic objectives.

Q2 FY26 Financial Highlights

CSB Bank has reported robust financial results for the quarter ended September 30, 2025:

The bank's performance shows significant growth across key financial parameters:

• Balance Sheet Size: Increased by 27% year-on-year to ₹50,021 crore.
• Total Business: Grew by 27% to ₹74,363 crore.
• Asset Quality: Gross NPA ratio stood at 1.81%, with Net NPA at 0.52%.
• Capital Adequacy Ratio: Maintained a strong position at 20.99%.

Business Segment Performance

CSB Bank's growth was driven by strong performances across various business segments:

• Gold Loans: Witnessed a robust growth of 37% year-on-year.
• CASA Ratio: Stood at 21%, reflecting the bank's focus on low-cost deposits.
• Retail Banking: Continued to be a significant contributor to the bank's overall growth.

Management Commentary

Pralay Mondal, Managing Director & CEO of CSB Bank, commented on the results: "Our performance this quarter demonstrates a steadfast commitment to the SBS 2030 vision envisioned by the Bank. Despite ongoing challenges in the broader market, our team's strategic focus on both growth and system stabilization in a calibrated manner has driven improved outcomes compared to Q1 FY26."

He further added, "With strong liquidity and capital buffers, we are well-positioned to maintain our growth trajectory in the upcoming quarters. We remain fully committed to continuously raising performance standards and fulfilling the expectations of our stakeholders."

The bank's management emphasized its focus on granular retail growth, which is expected to be a key differentiator in the forthcoming scale phase of its strategic plan.

CSB Bank's Q2 FY26 results and board restructuring reflect its commitment to sustainable growth and robust governance. As the bank continues to execute its strategic vision, investors and stakeholders will be keenly watching its progress in the coming quarters.