CSB Bank Q2 Results | Net profit up 16% on higher NII, lower costs; deposits grow 25%

Private sector lender CSB Bank Ltd on Wednesday (November 5) reported a 15.8% year-on-year increase in net profit to ₹160.3 crore for the quarter ended September 2025, compared with ₹138.4 crore in the same period last year.

The bank’s asset quality improved sequentially, with gross non-performing assets (NPA) at 1.81% in Q2 FY26 compared with 1.84% in the previous quarter. Net NPA declined to 0.52% from 0.66% in the preceding quarter.

Total deposits rose 25% year-on-year to ₹39,651 crore as of September 30, 2025, from ₹31,840 crore a year earlier. The bank’s CASA ratio stood at 21% as of September 30, 2025.

Net advances grew 29% year-on-year to ₹34,262 crore from ₹26,602 crore, supported by a robust 37% year-on-year increase in gold loans. Net interest income (NII) rose 15% year-on-year to ₹424 crore in Q2 FY26 from ₹367 crore in the same quarter last year and was up 12% sequentially from ₹379 crore in Q1 FY26.

Also Read: CSB Bank sees net interest margins stabilising, targets rise to 4% for FY26

Non-interest income grew 75% year-on-year to ₹349 crore from ₹199 crore and was higher by 43% compared with ₹245 crore in the previous quarter. The cost-to-income ratio stood at 64% for Q2 FY26, lower than both Q2 FY25 and Q1 FY26, reflecting improved operational efficiency. The bank noted that it continues to invest in people, distribution, systems, and processes as part of its SBS 2030 vision to build a strong foundation for future scale.

Operating profit increased 39% year-on-year to ₹279 crore from ₹200 crore and was up 27% quarter-on-quarter from ₹220 crore. Profit after tax (PAT) rose 16% year-on-year to ₹160 crore from ₹138 crore and increased 35% sequentially from ₹119 crore. Return on assets (RoA) stood at 1.33%, while net interest margin (NIM) was 3.81% during the quarter.

The bank maintained a robust capital structure, with a capital adequacy ratio of 20.99%, well above the regulatory requirement, compared with 22.74% as of September 30, 2024. Asset quality remained stable, with gross non-performing assets (NPA) at 1.81% as of September 30, 2025, against 1.84% as of June 30, 2025. Net NPA improved to 0.52% from 0.66% in the previous quarter.

Also Read: CSB Bank reports 25% YoY growth in deposits, strong surge in advances

MD and CEO said, "Despite the ongoing challenges in the broader market, our team's strategic focus on both growth and system stabilisation in a calibrated manner has driven improved outcomes as compared to Q1 FY26.
Our total business grew by 27% on a YoY basis, underpinned by a deposit growth of 25% and advance growth of 29%. We continued to outpace the industry trends across both parameters this quarter as well."

On Tuesday (November 4), shares of CSB Bank Ltd ended at ₹417.10, up by ₹8.35, or 2.04%, on the BSE.