CSB Bank Q1 Results: Stock falls 6% after sharp contraction in NIMs, asset quality deterioration

Thrissur, Kerala-base CSB Bank Ltd. reported results for the June quarter on Wednesday, August 13, post which, the stock has seen volatile moves.Net Interest Income (NII) or core income earned by the bank increased by 4.6% from last year to ₹378.5 crore from ₹362 crore.

Net profit for the period also grew 4.7% on a year-on-year basis to ₹118.6 crore from ₹113.3 crore.

Asset quality though saw deterioration on a sequential basis. Gross NPA stood at 1.84% from 1.57% in the March quarter, while Net NPA stood at 0.66% from 0.52% in March.
Provisions for the quarter remained unchanged at ₹60.8 crore from ₹60.2 crore in March.In its business update disclosed to the exchanges earlier in July, CSB Bank had reported a growth of 20% in overall deposits to ₹35,990 crore, while gross advances had grown by 32% from last year to ₹33,142 crore.

Advances against gold and gold jewellery also increased by 36% year-on-year to ₹14,928 crore.

CASA deposits increased by 14% year-on-year, while term deposits grew by 22% from the year-ago quarter to ₹27,525 crore.

Net Interest Margin (NIMs) for the quarter narrowed to 3.54% from 4.36% in the same quarter last year.

Shares of CSB Bank are trading 5.5% lower after the results announcement at ₹383.95. The stock though, has risen nearly 30% so far in 2025.