Earnings |CSB Bank (NSE:CSBBANK): Q3FY23 Results Out; Total Income rise 17% YoY

CSB Bank (NSE:CSBBANK) , formerly known as Catholic Syrian Bank, is a private sector bank in India. It was founded in 1920 and is headquartered in Thrissur, Kerala. The bank operates through a network of branches across India and offers a range of banking and financial services to its customers, including personal and business banking, loans, and insurance.

CSB Bank, announced its Q3FY23 results showing significant improvements in profitability and operating performance. The bank’s net profit increased by 19% YoY to Rs 391 crore for the nine months ended Q3FY23, and the annualized RoA improved from 1.83% to 2.00% YoY for the same period. Operating profit increased by 31% YoY to Rs 193 crore in Q3FY23, and the operating profit for the nine months ended Q3FY23 increased by 7% YoY to Rs 506 crore. The bank’s NII for the nine months ended 9MFY23 increased by 16% YoY to Rs 985 crore, and in Q3FY23, NII stood at Rs 350 crore, up by 15% YoY. The non-interest income ex-treasury posted a growth of 65% YoY over Q3FY22, mainly due to an increase in processing fees and other fee income. The cost-income ratio for Q3FY23 stood at 56.00%, and the cost-income ratio for the nine months ended Q3FY23 was at 56.98%.

CSB Bank’s asset quality remained healthy with Gross NPA and Net NPA ratios improving to 1.45% and 0.42%, respectively, as of Q3FY23. The PCR continued to be above 90%, indicating a comfortable liquidity position with a liquidity coverage ratio of 124%. Total deposits grew by 19% YoY, and the CASA book grew from Rs 6,587 crore to Rs 7,126 crore YoY. The advances (net) grew by 26% YoY to Rs 18,457 crore as on Q3FY23, with the gold loan portfolio powering the growth at 51% YoY. Overall, CSB Bank’s Q3FY23 results showed strong improvements in profitability, operating performance, asset quality, and liquidity position.

Speaking about the performance Mr. Pralay Mondal, Managing Director & CEO said, In the coming quarter while leveraging our core competencies in the gold loan business, we will put in more focus to grow the retail segment, both the retail liabilities and assets (other than gold) – with various new/revamped products and process improvements happening and proposed. We believe that with the new credit card launch in partnership with One Card, we will be able to further penetrate into the retail segment. We are perfecting the retail structure with the right manpower, policy roll outs, technology, collection framework, partnership tie ups etc. While all these will take some time to mature, we are already into business for segments like Personal Loans, Education Loans, Auto Loans, Commercial Vehicle etc SME & Corporate focus will continue with due caution. Boosting the fee income is in the top priority list. A new transaction banking vertical has been set up towards focusing on the trade and forex income. Bank has launched two new trade forex current account variants as well. With all these falling in place, we look forward to improve upon our performance in both the topline as well as bottom line parameters in the coming quarters.