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What is the story about?
Shares of CSB Bank were trading off the day's lows on Friday, October 23, after the company reported a 14% year-on-year rise in net profit to ₹183 crore for the September quarter from ₹160 crore in the corresponding quarter last year.
Net interest income (NII), the difference between interest earned and interest paid, increased 20% year-on-year to ₹510 crore from ₹424 crore in the year-ago period. Sequentially, net profit rose 22% from ₹150 crore in the June quarter, while NII increased 7% from ₹479 crore.
The bank’s asset quality improved during the quarter. Gross non-performing assets (NPAs) declined to 1.58% as of September 30, 2026, from 1.75% in the previous quarter and 1.81% a year earlier. Net NPAs fell to 0.33% from 0.39% sequentially and 0.52% year-on-year.
Managing Director and Chief Executive Officer Pralay Mondal said, “The solid foundation established through the Sustain and Build phases of our SBS 2030 journey is now translating into meaningful business outcomes.”
“During the quarter, we delivered strong topline performance, with deposits and advances growing by 18% and 22% year-on-year, respectively. Our bottom-line performance was equally encouraging, with net profit increasing by 14% year-on-year and 22% sequentially,” he said.
Total deposits rose 18% year-on-year to ₹46,889 crore as of September 30, while net advances increased 22% to ₹41,852 crore. The growth in advances was supported by a 44% year-on-year increase in the wholesale portfolio and 36% growth in gold loans.
The bank’s gold loan portfolio stood at ₹22,303 crore, up 36% from ₹16,456 crore a year earlier. The current account and savings account (CASA) ratio stood at 19%, compared with 21% in the year-ago period.
Non-interest income increased 20% sequentially to ₹274 crore from ₹229 crore in the June quarter. However, it declined 22% year-on-year from ₹349 crore. Net operating income rose 11% quarter-on-quarter to ₹783 crore.
Operating profit increased 10% sequentially to ₹276 crore, while provisions declined 39% to ₹30 crore from ₹49 crore in the previous quarter. The bank’s cost-to-income ratio stood at 64.80%, compared with 64.55% in the June quarter and 63.86% a year earlier.
Mondal said the bank’s asset quality performance during the quarter was notable, with gross and net NPAs at their lowest levels in recent quarters. The net NPA ratio was at its lowest in 11 quarters, while the gross NPA ratio of 1.58% was the lowest since the first quarter of FY26.
“Looking ahead, we remain focused on sustaining this momentum. In the second half of FY27, we plan to accelerate growth across our key business segments,” he said.
The bank’s capital adequacy ratio stood at 19.55% as of September 30, 2026, compared with 20.99% a year earlier. Its net interest margin remained unchanged at 3.81% year-on-year, while return on assets stood at 1.29%, compared with 1.33% in the year-ago quarter.
Shares of CSB Bank are trading 1.4% lower, giving up most of its recovery at ₹301.65. The stock is down 38% so far this year.
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Net interest income (NII), the difference between interest earned and interest paid, increased 20% year-on-year to ₹510 crore from ₹424 crore in the year-ago period. Sequentially, net profit rose 22% from ₹150 crore in the June quarter, while NII increased 7% from ₹479 crore.
The bank’s asset quality improved during the quarter. Gross non-performing assets (NPAs) declined to 1.58% as of September 30, 2026, from 1.75% in the previous quarter and 1.81% a year earlier. Net NPAs fell to 0.33% from 0.39% sequentially and 0.52% year-on-year.
Managing Director and Chief Executive Officer Pralay Mondal said, “The solid foundation established through the Sustain and Build phases of our SBS 2030 journey is now translating into meaningful business outcomes.”
“During the quarter, we delivered strong topline performance, with deposits and advances growing by 18% and 22% year-on-year, respectively. Our bottom-line performance was equally encouraging, with net profit increasing by 14% year-on-year and 22% sequentially,” he said.
Deposits and advances grow
Total deposits rose 18% year-on-year to ₹46,889 crore as of September 30, while net advances increased 22% to ₹41,852 crore. The growth in advances was supported by a 44% year-on-year increase in the wholesale portfolio and 36% growth in gold loans.
The bank’s gold loan portfolio stood at ₹22,303 crore, up 36% from ₹16,456 crore a year earlier. The current account and savings account (CASA) ratio stood at 19%, compared with 21% in the year-ago period.
Non-interest income increased 20% sequentially to ₹274 crore from ₹229 crore in the June quarter. However, it declined 22% year-on-year from ₹349 crore. Net operating income rose 11% quarter-on-quarter to ₹783 crore.
Operating profit increased 10% sequentially to ₹276 crore, while provisions declined 39% to ₹30 crore from ₹49 crore in the previous quarter. The bank’s cost-to-income ratio stood at 64.80%, compared with 64.55% in the June quarter and 63.86% a year earlier.
Mondal said the bank’s asset quality performance during the quarter was notable, with gross and net NPAs at their lowest levels in recent quarters. The net NPA ratio was at its lowest in 11 quarters, while the gross NPA ratio of 1.58% was the lowest since the first quarter of FY26.
“Looking ahead, we remain focused on sustaining this momentum. In the second half of FY27, we plan to accelerate growth across our key business segments,” he said.
The bank’s capital adequacy ratio stood at 19.55% as of September 30, 2026, compared with 20.99% a year earlier. Its net interest margin remained unchanged at 3.81% year-on-year, while return on assets stood at 1.29%, compared with 1.33% in the year-ago quarter.
Shares of CSB Bank are trading 1.4% lower, giving up most of its recovery at ₹301.65. The stock is down 38% so far this year.
Also read: Jio Platforms IPO: Largest Indian IPO makes history with 1 crore applications; First across the globe
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