CSB Bank Limited reported its Q3 FY25 financial results, showing a steady net profit growth despite a marginal decline in Net Interest Income (NII).
Key Financial Highlights (Q3 FY25)
- Net Interest Income (NII): ₹375 crore, down 2% YoY from ₹383 crore in Q3 FY24, but up 2% QoQ from ₹367 crore in Q2 FY25.
- Net Profit: ₹152 crore, rising 1% YoY from ₹150 crore in Q3 FY24, and up 10% QoQ from ₹138 crore in Q2 FY25.
- Operating Profit: ₹221 crore, up 13% YoY from ₹196 crore in Q3 FY24, and up 10% QoQ from ₹200 crore in Q2 FY25.
- Non-Interest Income: ₹219 crore, surging 75% YoY from ₹125 crore in Q3 FY24, and up 10% QoQ from ₹199 crore in Q2 FY25.
- Total Deposits: ₹33,407 crore, rising 22% YoY from ₹27,345 crore as of December 31, 2023.
- Advances (Net): ₹28,639 crore, increasing 26% YoY from ₹22,658 crore in Q3 FY24, driven by 36% YoY growth in gold loans.
Asset Quality & Capital Strength
- Gross NPA: Improved to 1.58% as of December 31, 2024, compared to 1.68% in Q2 FY25 and 1.22% in Q3 FY24.
- Net NPA: Declined to 0.64%, from 0.69% in Q2 FY25 and 0.31% in Q3 FY24.
- Capital Adequacy Ratio (CAR): 21.08%, well above the regulatory requirement.
CEO’s Comments on Q3 FY25 Performance
Mr. Pralay Mondal, Managing Director & CEO, CSB Bank, highlighted the bank’s robust business growth, surpassing industry trends in both deposits and advances.
- Deposits registered a 22% YoY growth, while advances rose by 26%, outpacing the industry average of 10-12%.
- Gold loans remain strong, with 36% YoY growth, while SME and retail advances (excluding gold) grew 29% and 32% YoY, respectively.
- Operating profit surged 13% YoY, while quarterly net profit also showed growth on both YoY and QoQ basis.
- Despite a marginal NII decline, the bank witnessed a 75% YoY growth in non-interest income.
- Gross and net NPAs improved, while the cost-to-income ratio declined sequentially.
Outlook
CSB Bank remains well-positioned for future growth, supported by strong balance sheet fundamentals, asset quality improvements, and stable profitability. The bank continues to invest in operational efficiencies, focusing on digital transformation and cost optimization.