The Board of Directors of CSB Bank took on record the financial results for the quarter (Q3 FY 2024) and nine months ended 31.12.2023, which were subject to limited review in their meeting dated 29.01.2024.
Highlights
- Profit After-tax: Bank registered a net profit of Rs 415Crs for the nine months ended 31.12.2023vis a vis a net profit of Rs 391 Crs for the corresponding period last year. Net profit improved by 6% on a YoY basis. Bank continued with its policy of maintaining accelerated loan provisioning during this quarter as well. Net profit for the quarter alone stood at Rs. 150Crs. The annualized RoA for the nine months ended 31.12.2023 is at 1.78%.
- Operating Profit: The operating profit for the nine months period ended 31.12.2023 stood at Rs 552 Crs as against Rs 506 Crs for the corresponding previous period registering a growth of 9%. Operating profit of the bank for Q3 FY 2024 stood at Rs 196 Crs with a growth of 12% over the sequential quarter.
- Net Interest Income (NII) for 9 months ended 31.12.2023 stood at Rs 1090 Crs posting an increase of 11% YoY. In Q3 FY 24, the NII stood at Rs 383 Crs with an increase of 11% over Q2 FY 24 and 9 % over Q3 FY 23.
- Non-Interest Income for Q3 FY 2024 posted a growth of 39% over Q3 FY 2023. Other income for the nine months ended 31.12.2023 stood at Rs 388 Crs as against Rs 190 Crs for nine months ended 31.12.2022 with a whopping 104% increase.
- Cost Income Ratio for Q3 FY 24 stood at 61.44% as against 64.09% for Q2 FY 24. Cost income ratio for the nine months ended 31.12.2023 was at 62.66% as against 56.98% as on 31.12.2022 consequent to the investments made in people, technology, distribution etc. keeping the long term growth prospects of the Bank in mind.
- Healthy Asset Quality & Provisioning
The GNPA and NNPA have been checkmated and it has marginally come down sequentially over Sept 2023 / on year on year basis. PCR continues to be in excess of 90%
| Particulars | Q3 FY 24 | Q2 FY 24 | Q1 FY 24 | FY 23 |
| Gross NPA | 278.73 | 284.76 | 270.66 | 262.56 |
| Gross NPA % | 1.22% | 1.27% | 1.27% | 1.26% |
| Net NPA | 70.23 | 72.50 | 67.77 | 71.82 |
| Net NPA % | 0.31% | 0.33% | 0.32% | 0.35% |
| Provisioning Coverage Ratio | 91.85% | 91.75% | 92.54% | 92.11% |
7. Robust Capital Structure – Capital Adequacy Ratio is at 22.99%, which is well above the regulatory requirement. Leverage ratio is at 8.97% as on 31.12.2023 much above the regulatory threshold ceilings.
8. Comfortable Liquidity Position – Liquidity Coverage Ratio as on 31.12.23 stood at a comfortable level of 123% whereas on a quarterly average basis the same was maintained at 113%for Q3.
9. Total Deposits grew by 21 % YoY. The CASA book grew from Rs 7126 Crs to Rs 7543 Crs YoY (Up by 6%). The CASA ratio stood at 27.58 % as on 31.12.2023.
10. Advances (Net) grew by 23% YoY from Rs 18457 Crsto Rs 22658 Crsas on 31.12.2023.
Performance Highlights:
| (Rs Crore) | Q3 FY 24 | Q3 FY 23 | Inc/Dec% | Q2FY24 | QoQ% Growth | 9M FY 24 | 9M FY 23 | Inc/Dec% |
| Interest Income | 761.84 | 592.05 | 29% | 687.35 | 11% | 2,132.67 | 1,683.16 | 27% |
| Interest Expense | 379.16 | 242.31 | 56% | 343.65 | 10% | 1,042.29 | 697.76 | 49% |
| Net Interest Income | 382.67 | 349.74 | 9% | 343.70 | 11% | 1,090.38 | 985.40 | 11% |
| Treasury Profits | 12.56 | 6.19 | 103% | 5.78 | 117% | 30.52 | -5.26 | -681% |
| Other Income | 112.78 | 83.71 | 35% | 136.75 | -18% | 357.25 | 194.95 | 83% |
| Total Non-Interest Income | 125.34 | 89.90 | 39% | 142.54 | -12% | 387.77 | 189.69 | 104% |
| Net Operating Income | 508.01 | 439.64 | 16% | 486.24 | 4% | 1,478.16 | 1,175.09 | 26% |
| Staff Cost | 172.81 | 151.62 | 14% | 175.74 | -2% | 524.70 | 399.48 | 31% |
| Other Opex | 139.33 | 94.58 | 47% | 135.87 | 3% | 401.53 | 270.09 | 49% |
| Total Opex | 312.14 | 246.20 | 27% | 311.61 | 0% | 926.23 | 669.57 | 38% |
| Operating Profit | 195.87 | 193.44 | 1% | 174.63 | 12% | 551.93 | 505.52 | 9% |
| Provision for NPA | -5.62 | -15.48 | -64% | -8.28 | -32% | -10.19 | -25.34 | -60% |
| Other Provisions | 1.09 | 0.52 | 110% | 4.95 | -78% | 7.06 | 8.33 | -15% |
| Provisions other than Tax | -4.54 | -14.96 | -70% | -3.33 | 36% | -3.13 | -17.01 | -82% |
| PBT | 200.40 | 208.40 | -4% | 177.96 | 13% | 555.06 | 522.53 | 6% |
| Tax | 50.44 | 52.45 | -4% | 44.79 | 13% | 139.70 | 131.51 | 6% |
| PAT | 149.97 | 155.95 | -4% | 133.17 | 13% | 415.36 | 391.02 | 6% |
| Deposits | 27,344.83 | 22,664.02 | 21% | 25,438.38 | 7% | 27,344.83 | 22,664.02 | 21% |
| Advances(Net) | 22,658.16 | 18,456.70 | 23% | 22,255.99 | 2% | 22,658.16 | 18,456.70 | 23% |
| CASA | 7,542.62 | 7,125.74 | 6% | 7,447.71 | 1% | 7,542.62 | 7,125.74 | 6% |
| Gold | 10,817.06 | 8,761.51 | 23% | 10,594.64 | 2% | 10,817.06 | 8,761.51 | 23% |
| CASA% | 27.58% | 31.44% | -4% | 29.28% | -2% | 27.58% | 31.44% | -4% |
CEO Speak:
Speaking about the performance Mr. Pralay Mondal, Managing Director & CEO said, “The last quarter gone by was reasonably stable for us. Our efforts have always been to grow 30 to 50% faster than the system. The liquidity conditions prevailed in the system did pose some challenges in funds management. We focused more on deposits this quarter and could register a growth of 21% on a YoY basis whereas the industry grew by 13%. On the advance front (net) we registered a growth of 23% vis a vis 16% industry (without merger). Gold, Retail ex gold and SME did well in the quarter with a YoY growth of 23%, 44% and 28% respectively. Effective fund management duly factoring the cost considerations helped us to maintain a NIM of above 5% for Q3 and the 9 months ended 31.12.23. All other key ratios like, CRAR, RoA, NPA ratios etc continue to be strong
SBS journey got the much needed booster when we kick started the CBS migration project in the bank. A detailed blue print has been prepared for the implementation and we are progressing there. Once the products/processes stabilizes post the new CBS roll out, our customer acquisition pace will go up significantly and will lay a stronger foundation for the scale phase. Our vision is to transform from a small bank to a mid-sized bank by FY 2030 and the entire team is working passionately for making this a reality.”