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What is the story about?
Shares of CSB Bank Ltd. fell as much as 18% on Wednesday, January 28, in response to its December quarter results, which saw a deterioration in the lender's asset quality on a sequential basis. Credit costs also rose from last year.
At the end of the December quarter, Gross Non-Performing Assets (NPAs) for the quarter stood at 1.96% from 1.81% during the September quarter. Net NPAs also deteriorated to 0.67% from 0.52% in Sepetmber.
On an absolute basis, Gross NPAs rose by ₹100 crore to ₹729.4 crore from ₹628.75 crore, while Net NPAs increased to ₹245.66 crore from ₹178.46 crore in September.
Provisions for the quarter also increased to ₹86.77 crore from ₹63.65 crore last quarter.
Among other parameters, Net Interest Income (NII) or core income earned by the lender stood at ₹453.2 crore, a growth of 20.7% from last year's figure of ₹375.38 crore.
Net profit for the period remained nearly unchanged at ₹152.7 crore from ₹151.6 crore last year.
In its quarterly business update shared earlier, CSB Bank had reported a 21% deposit growth to ₹33,407 crore, while advances had seen a growth of 28% from last year to ₹28,639 crore.
For the December quarter, CSB Bank's Net Interest Margins stood at 3.86% from 4.11% last year, but marginally better than the 3.81% reported during the September quarter.
Cost of funds at the end of the quarter were at 6.46%, higher than the 6.32% last quarter. The September quarter had seen cost of funds at 6.53%. Credit costs have also seen a sharp surge compared to the base quarter to 0.69% from 0.17% last year and 0.53% in the September quarter.
Shares of CSB Bank are now trading 18% lower after the results announcement at ₹409.05. The stock has risen 52% in the last 12 months.
At the end of the December quarter, Gross Non-Performing Assets (NPAs) for the quarter stood at 1.96% from 1.81% during the September quarter. Net NPAs also deteriorated to 0.67% from 0.52% in Sepetmber.
On an absolute basis, Gross NPAs rose by ₹100 crore to ₹729.4 crore from ₹628.75 crore, while Net NPAs increased to ₹245.66 crore from ₹178.46 crore in September.
Provisions for the quarter also increased to ₹86.77 crore from ₹63.65 crore last quarter.
Among other parameters, Net Interest Income (NII) or core income earned by the lender stood at ₹453.2 crore, a growth of 20.7% from last year's figure of ₹375.38 crore.
Net profit for the period remained nearly unchanged at ₹152.7 crore from ₹151.6 crore last year.
In its quarterly business update shared earlier, CSB Bank had reported a 21% deposit growth to ₹33,407 crore, while advances had seen a growth of 28% from last year to ₹28,639 crore.
For the December quarter, CSB Bank's Net Interest Margins stood at 3.86% from 4.11% last year, but marginally better than the 3.81% reported during the September quarter.
Cost of funds at the end of the quarter were at 6.46%, higher than the 6.32% last quarter. The September quarter had seen cost of funds at 6.53%. Credit costs have also seen a sharp surge compared to the base quarter to 0.69% from 0.17% last year and 0.53% in the September quarter.
Shares of CSB Bank are now trading 18% lower after the results announcement at ₹409.05. The stock has risen 52% in the last 12 months.
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