KOCHI: CSB Bank reported flat net profit at Rs152 crore in Q3, up 1.3 year-on-year. On the other hand, net interest income (NII) declined 1.9 to Rs375.4 crore, but asset quality improved with lower NPAs sequentially.
The bank’s gross NPAs reduced slightly to Rs458.2 crore or 1.58 of total advances, compared with Rs452.1 crore or 1.68 in the previous quarter. Similarly, net NPAs improved to Rs182.7 crore or 0.64, down from Rs183.3 crore or 0.69 per cent sequentially. The provision coverage ratio remained steady at 81.5.
Slippages stood at Rs62 crore, down from Rs64 crore in the previous quarter, with the annualised slippage ratio improving to 0.87 per cent from 0.95 per cent. The annualised credit cost remained unchanged at 0.08 sequentially but was up from -0.09 a year ago. Meanwhile, the credit-deposit ratio improved sequentially to 85.7 per cent from 84.4 per cent but was lower than 88.3 per cent a year ago.
The cost-to-income ratio (CI ratio) improved to 62.9 per cent from 65.2 per cent in the previous quarter and 64.5 per cent a year ago. Net interest margin (NIM) declined year-on-year and sequentially to 4.11 per cent from 4.84 per cent and 4.3 per cent, respectively.
Return on assets
Return on assets remained stable at 1.48 sequentially but declined from 1.73 a year ago. Return on equity 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 Rs299, down from the day’s high of Rs309.50. However, the stock recovered and was trading flat at about Rs303.20 (at 3 pm on Thursady).
