CSB Bank Q3 Results: Net profit flat, NII dips 2%; asset quality improves marginally

The bank’s net interest income (NII) witnessed a decline of 1.9%, falling to ₹375.4 crore from ₹383 crore recorded in Q3 FY24.

Asset quality showed improvement during the quarter. Gross non-performing assets (NPAs) marginally reduced to ₹458.2 crore, or 1.58% of total advances, compared to ₹452.1 crore or 1.68% in the previous quarter.

Similarly, net NPAs improved to ₹182.7 crore, or 0.64%, from ₹183.3 crore or 0.69% sequentially. The bank’s provision coverage ratio (PCR) remained steady at 81.5%.
Slippages stood at ₹62 crore compared to ₹64 crore in the previous quarter, with the annualised slippage ratio improving to 0.87% from 0.95%.

The annualised credit cost stood at 0.08%, unchanged from the previous quarter but up from -0.09% a year ago. Meanwhile, the credit-deposit ratio improved sequentially to 85.7% from 84.4% but was down from 88.3% a year ago.

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The cost-to-income ratio also saw an improvement, standing at 62.9% compared to 65.2% in the previous quarter and 64.5% in the same period last year. Net interest margin (NIM) declined both year-on-year and sequentially to 4.11% from 4.84% and 4.3%, respectively.

Return on assets (ROA) remained stable at 1.48% sequentially but declined from 1.73% a year ago. Return on equity (ROE) stood at 15.3%, higher than 14.5% in the previous quarter but lower than 16.7% in the corresponding quarter last year.

Following the results announcement, CSB Bank’s shares dipped to ₹299, down from the day’s high of ₹309.50. However, the stock managed to recover and was trading flat at ₹301.20, up 0.25%, as of 3:03 PM on the BSE.