CSB Bank Q3 Results: Stock slumps 12% after asset quality deteriorates, provisions rise

Shares of CSB Bank Ltd. fell as much as 12% 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.

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.

Shares of CSB Bank are now trading 12.53% lower after the results announcement at ₹438.75. The stock has risen 52% in the last 12 months.