CSB Bank’s net profit rises to 182.72 crore rupees in fiscal second quarter
Key Facts
CSB Bank Limited, listed in India under the ticker CSBBANK, reported net profit of 182.72 crore rupees in the second quarter of fiscal 2026-2027, ended in September, up from 160.33 crore rupees in the year-earlier period. The results were part of the unaudited figures for the quarter and half-year ended September 30, 2026, which the board was scheduled to consider on October 23. Net interest income, the difference between returns on loans and the cost of deposits, rose 20% year on year to 510 crore rupees from 424 crore. Provisions also fell to 30.1 crore rupees, compared with 49 crore in the previous quarter and 63.7 crore a year earlier. The figures show net profit rising alongside higher interest income and lower provisions, while pre-provision operating profit edged down.
Pre-provision operating profit was 275.76 crore rupees, down 1.3% from 279.30 crore in the year-earlier quarter. On a quarterly basis, non-interest income rose 20% to 274 crore rupees from 229 crore in the first quarter of fiscal 2026-2027. The cost-to-income ratio was 64.80% in the quarter ended September, compared with 63.86% a year earlier and 64.55% in the previous quarter. The cost-to-assets ratio was 3.59%, compared with 4.11% in the year-earlier period and 3.31% in the previous quarter. These indicators put net income growth in a mixed operating context, with a modest decline in pre-provision profit and both the cost-to-income and cost-to-assets ratios above their year-earlier levels. The published figures did not state that improved asset quality was a direct cause of the profit increase.
Non-performing loan indicators improved on a quarterly basis. Gross non-performing loans as a share of gross advances fell to 1.58% from 1.75% in the previous quarter, while the net non-performing loan ratio declined to 0.33% from 0.39%. Gross non-performing loans fell to 670.58 crore rupees from 715.42 crore in the previous quarter, while net non-performing loans declined to 139.58 crore from 157.68 crore. This coincided with lower provisions than in the previous quarter and the year-earlier period. The figures point to an improvement in asset quality during the quarter on a quarterly basis, alongside growth in deposits and advances.
Total deposits rose 18% year on year to 46,889 crore rupees on September 30, 2026, from 39,651 crore on the same date a year earlier. The current and savings account ratio, known as CASA, was 19%. Net advances rose 22% to 41,852 crore rupees, compared with 34,262 crore on September 30, 2025. The report said the wholesale portfolio grew 44% year on year and the gold loan portfolio 36%. Deposit and advance growth indicates expansion in the bank’s funding and lending during the period, while the portfolio growth rates show two sources of the increase in advances.
The capital adequacy ratio was 19.55% at the end of the September 2026 quarter, compared with 20.99% a year earlier. In the stock market, the bank’s shares were down 0.02% at 306.00 rupees on the Bombay Stock Exchange at 2:55 p.m. India time on October 23. This snapshot differs from the previous draft’s description of the share reaction, showing a slight decline rather than a gain. The board had set October 23 to consider the unaudited results for the quarter and half-year ended September 30. The results-day session therefore combined year-on-year net profit growth with a quarterly improvement in loan impairment indicators, while the share move recorded at the time remained limited and negative.