KOCHI: CSB Bank reported a 14 per cent year-on-year rise in net profit to Rs183 crore for the second quarter of FY27, supported by strong growth in advances and an improvement in asset quality.
Net profit rose from Rs160 crore in the corresponding quarter of the previous financial year and was up 22 per cent sequentially from Rs150 crore in the June quarter.
Net interest income (NII) increased 20 per cent year on year to Rs510 crore from Rs424 crore. Interest income rose 21 per cent to Rs1,339 crore, while interest expenses also increased 21 per cent to Rs829 crore.
The bank's net interest margin stood at 3.81 per cent during the quarter, while return on assets was 1.29 per cent.
Total deposits grew 18 per cent year on year to Rs46,889 crore as of September 30, 2026, while net advances increased 22 per cent to Rs41,852 crore.
Gold loans account for 53% of loan book
Gold loans continued to drive credit growth, rising 36 per cent year on year to Rs22,303 crore. They accounted for approximately 53 per cent of the bank's net advances. Wholesale advances also recorded strong growth of 44 per cent during the period.
Asset quality improved during the quarter. Gross non-performing assets (NPA) declined to 1.58 per cent of advances as of September 30, 2026, from 1.81 per cent a year earlier and 1.75 per cent at the end of June 2026.
Net NPAs fell to 0.33 per cent from 0.52 per cent a year earlier and 0.39 per cent in the preceding quarter. The provision coverage ratio, including technical write-offs, improved to 87.65 per cent from 84.14 per cent a year earlier.
Operating profit, however, declined marginally by one per cent year on year to Rs276 crore from Rs279 crore. Other income fell 22 per cent to Rs274 crore from Rs349 crore, while operating expenses rose three per cent to Rs508 crore.
The cost-to-income ratio stood at 64.80 per cent, compared with 63.86 per cent in the year-ago quarter.
The bank maintained a capital adequacy ratio (CAR) of 19.55 per cent as of September 30, 2026, against 20.99 per cent a year earlier.
CSB Bank said it would continue to focus on growth across its key business segments during the second half of FY27 as it works towards its ambition of becoming a mid-sized bank. The MD & CEO of the bank, Pralay Mondal, said: "The quarter gone by was exceptional as far as asset quality is concerned with GNPA and NNPA level being the lowest since last few quarters."
