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CSB Bank reported a 27% year-on-year increase in its net profit for the first quarter of FY27, supported by healthy growth in its core banking income. The private sector lender recorded higher total income, interest income and net interest income during the quarter, reflecting steady business growth. Asset quality also improved, with both gross and net non-performing assets declining compared to the corresponding period last year. Lower provisions further supported profitability, although the bank's capital adequacy ratio moderated from the year-ago level while remaining comfortably above regulatory requirements.
CSB Bank reported a 27% year-on-year increase in its net profit for the quarter ended June of FY27, with earnings rising to INR 150 crore from INR 119 crore in the corresponding quarter of the previous financial year. The growth was driven by higher core income, according to the bank's regulatory filing.
The bank's total income increased to INR 1,516 crore during the quarter, compared with INR 1,286 crore in the same period last year. Interest income also registered healthy growth, rising to INR 1,287 crore from INR 1,041 crore, reflecting an expansion in its lending business and interest-earning assets.
Net interest income (NII), a key indicator of a bank's core operational performance, rose 26% year-on-year to INR 479 crore, up from INR 379 crore in the corresponding quarter of the previous financial year.
The lender also reported an improvement in asset quality. Gross non-performing assets (GNPAs) declined to 1.75% of gross advances at the end of the June quarter, compared with 1.84% a year earlier. Net non-performing assets (NNPAs) also improved, falling to 0.39% from 0.66% in the same period last year.
With better asset quality, the bank's provisions and contingencies reduced to INR 49 crore, compared with INR 61 crore in the corresponding quarter of the previous financial year. Lower provisioning requirements helped support the bank's profitability during the quarter.
However, the bank's capital adequacy ratio stood at 19.96% at the end of the June quarter, lower than 21.71% reported in the year-ago period. Despite the decline, the ratio remained well above the minimum regulatory requirement, indicating a comfortable capital position to support future business growth.
CSB Bank has continued to focus on strengthening its core lending operations while maintaining prudent risk management. The improvement in asset quality and sustained growth in core income come after the bank delivered steady financial performance in recent quarters, supported by its retail and gold loan businesses.
Source PTI
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