With this fall, the stock has declined 18% in the last three trading sessions.
CSB Bank reported results for the June quarter on Wednesday where it saw low single-digit growth in its Net Interest Income (NII) and its net profit, while asset quality deteriorated on a sequential basis.The lender’s margins came under significant pressure, declining as much as 82 basis points from last year. Most other lenders have faced pressure on their NIMs during the June quarter.
In an interaction with CNBC-TV18 on Thursday, CSB Bank’s MD & CEO Pralay Mondal said that he expects margins to remain between 3.5% and 4% and that they have made a bottom this quarter. He attributed the fall in NIMs to a rise in deposits towards the end of financial year 2025, which came at a higher cost.Mondal also aspires for credit growth or CSB Bank will be twice the industry average.
The stock is declining on heavy volumes as well. Tuesday’s 6% fall came on the back of 9.1 lakh shares, Wednesday saw 16 lakh shares being traded on the day of its results, while Thursday’s session has already seen 9 lakh shares change hands within the first hour of trade. The 20-day average volume for the stock at this time of the day stands at 70,000 shares.
Dolat Capital has become the first brokerage to downgrade the stock, which was earlier a “consensus buy” among the seven analysts who covered the stock.
Dolat Capital downgraded the stock to “reduce” from the earlier rating of “buy”, and cut its price target t ₹450 from ₹390 earlier.
Shares of CSB Bank are marginally off the lows, currently trading 6.5% lower at ₹360. The stock had just hit a 52-week high of ₹445.6 on August 5 this year.
First Published: Aug 14, 2025 10:17 AM IS
