CSB Bank Q3 Results: Net profit drops 4% YoY to Rs 150 crore

Kolkata: Fairfax-backed CSB Bank on Monday reported a 4% lower net profit at Rs 150 crore for the December quarter compared to the year-ago period print on account of lower bad loan recovery print while its asset quality further strengthened.

Net profit was Rs 156 crore earlier. The bank's net interest margin (NIM) for the quarter was at 5.11% in line with the guidance even as it was 41 basis points lower than the year ago quarter.

"We expect NIM to be above 5% for March quarter although the cost of funds will remain elevated at the industry level," managing director Pralay Mondal told ET. He expects the bank's NIM to be less impacted going forward as and when Reserve Bank of India starts easing the policy rate given the fact that almost 60% of the bank's advances are fixed rate loans.


Its operating profit for the quarter was 1% higher at Rs 196 crore backed by 9% rise in net interest income at Rs 383 crore and 39% jump in other income at Rs 125 crore.

Asset quality improved with gross non-performing assets ratio fell to 1.22% at the end of December from 1.45% a year back.

Its advances grew by 23% year-on-year to Rs 22658 crore with gold loans constituting 48% of it. Deposits grew by 21 to Rs 27345 crore.