CSB Bank announced Q4FY24 & FY24 results: Financial Highlights: Profit After-tax: Bank recorded a Net profit of Rs 567 crore for FY24 as against a Net profit of Rs 547 crore in FY23. Net profit improved by 4% on a YoY basis. RoA of the Bank is at 1.79% for FY24. Strong Operating Performance: Operating profit of bank for FY24 was Rs 780 crore registering YoY growth of 10% as against Rs 707 crore during FY23. Q4FY24 operating profit grew YoY by 13% and stood at Rs 228 crore as against Rs 202 crore in Q4FY23. Net Interest Income (NII): Bank recorded a stable NII growth of 11% both on a YoY and quarterly basis. NII for FY24 & Q4FY24 stood at Rs 1,476 crore (Rs 1,334 crore for FY23) and Rs 386 crore (Rs 349 crore for Q4FY23) respectively. Non-Interest Income for FY24 saw an impressive growth of 85% over FY23 mainly due to increased Fee Income, Forex income, Treasury Profits etc. On a quarterly basis ie, Q4FY24 vs Q4FY23, non- interest income has registered a growth of 56% Cost Income Ratio for Q4FY24 stood at 60.86% as against 57.45% for Q4FY23 and the corresponding ratio for FY 2024 was at 62.15% as against 57.12% for FY23. Gross NPA and Net NPA ratios are at 1.47% and 0.51% respectively as at Q4FY24 Robust Capital Structure - Capital Adequacy Ratio is at a healthy level of 24.47%, and is well above the regulatory requirement. Comfortable Liquidity Position - Liquidity Coverage Ratio is comfortable at 117% (average basis) Total Deposits grew by 21 % YoY. CASA book is at Rs 8,085 crore with a share of 27.20% Advances (Net) grew by 18% YoY to Rs 24,336 crore as on 31.03.2024 with a CD ratio of 82% Speaking about the performance, Pralay Mondal, Managing Director & CEO said, “This is the second year of our SBS 2030 vision. In a journey like this what is more important is relentlessly pursuing the vision set in enjoying the ups and surfing through the challenges as a team. Despite the challenges posed by the economic conditions, regulatory changes, liquidity constraints, increased competition etc., we got our priorities right and could post reasonably good numbers. We could register a net profit of Rs 567 crore; backed by a 20% growth in Business; 18% net loan book growth and 21% deposit growth. We continued to grow faster than the average industry growth trends in both deposits and advances. Our operating profit recorded a growth of 11% supported by growth in NII and other income. Key indicators like NIM, CRAR, RoA, NPA ratios etc. continue to be strong. We continued our efforts in building the distribution by opening another 76 branches. The most critical milestone that we look forward to in FY 25 is the roll out of phase I of CBS migration and the right execution will act as a catalyst in our progressive journey. We will be strengthening the SME & Corporate segments and strive for a better market share without losing our focus on retail including gold. Business mix will tilt towards the anticipated SME & WSB segment and for the betterment of the Bank." Result PDF
CSB Bank announced Q3FY24 & 9MFY24 results: Profit After-tax: CSB Bank reported a net profit of Rs 415 crore for 9MFY24, compared to Rs 391 crore for the same period last year, marking a year-over-year (YoY) increase of 6%. The net profit for the quarter alone was Rs 150 crore. Operating Profit: Operating profit for 9MFY24 reached Rs 552 crore, a growth of 9% from the previous year's Rs 506 crore. For Q3FY24, the Bank posted an operating profit of Rs 196 crore, up 12% from the previous sequential quarter. Net Interest Income (NII): NII for 9MFY24 was Rs 1,090 crore, showing an 11% increase YoY. For Q3FY24, NII stood at Rs 383 crore, with an 11% increase over the second quarter and 9% over the same quarter the previous year. Non-Interest Income: For Q3FY24, non-interest income increased by 39% compared to Q3FY23. The nine-month period saw non-interest income reach Rs 388 crore, a substantial 104% increase from the Rs 190 crore of the previous year. Cost-to-Income Ratio: The cost-to-income ratio for Q3FY24 was 61.44%, compared to 64.09% for Q2FY24. The ratio for the nine months was 62.66%, higher than the 56.98% from the previous year. This increase is attributed to investments in personnel, technology, and distribution. Asset Quality & Provisioning: The Gross Non-Performing Assets (GNPA) and Net NPA marginally declined both sequentially and year-over-year, with the Provisioning Coverage Ratio (PCR) exceeding 90%. Capital Structure: The Capital Adequacy Ratio stood at 22.99%, well above the regulatory requirement. Liquidity Position: The Liquidity Coverage Ratio as of December 31, 2023, was comfortably at 123%. Deposits and Advances: Deposits grew by 21% YoY, with the current and savings account (CASA) growing from Rs 7,126 crore to Rs 7,543 crore—a 6% increase. Advances (Net) grew by 23% YoY from Rs 18,457 crore to Rs 22,658 crore. CASA Ratio: Stood at 27.58% as of December 31, 2023. Gross NPA: Rs 278.73 crore in Q3FY24, slightly lower than previous quarters. Net NPA: Rs 70.23 crore in Q3FY24, reflecting a small reduction from prior quarters. Speaking about the performance 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 that 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 in the cost considerations helped us to maintain an NIM of above 5% for Q3 and 9MFY24. 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 blueprint has been prepared for the implementation and we are progressing there. Once the products/processes stabilize after the new CBS rollout, 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 midsized bank by FY 2030 and the entire team is working passionately to make this a reality." Result PDF
Conference Call with CSB Bank Ltd. Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.
CSB Bank announced Q2FY24 & H1FY24 results: 1. Financial Performance: - CSB Bank recorded a net profit of Rs 265.39 crore during the half year ended September 30, 2023, showing a growth of 13% YoY. - Net Interest Income for H1FY24 stood at Rs 707.71 crore, posting an increase of 11% YoY. - Non-interest income grew by 171% in H1FY24 compared to the same period last year. - Cost Income Ratio is at 64.52% as of the end of Q2FY24, impacted by investments in people, distribution, systems, and processes. 2. Asset Quality and Provisioning: - The Gross NPA stood at 1.27% and the Net NPA at 0.33% as at the end of Q2FY24, maintaining stable levels from the previous quarter. - The Provisioning Coverage Ratio stood at 91.75%, ensuring a healthy asset quality. 3. Capital Adequacy and Liquidity: - Capital Adequacy Ratio is at 23.96%, well above the regulatory requirement. - Total Deposits grew by 21% YoY, with CASA book growing by 4% to Rs 7,448 crore. - The liquidity Coverage Ratio stood at 109% and the Net Stable Funding Ratio at 143%, indicating a healthy liquidity position. 4. Business Growth: - Total Business crossed Rs 47,900 crore, posting a growth of 24% YoY, supported by a 27% YoY growth in net advances. - Gold Loans recorded a robust growth of 32% YoY. - CASA ratio stood at 29.28% as of September 30, 2023. Speaking about the performance Pralay Mondal, Managing Director & CEO said, “Consistent performance and improvement quarter over quarter gives comfort in pursuing the larger vision of SBS 2030 with lot more confidence. We could register a net profit of Rs 265 crore for the half year ended 30.09.23; up by 13% YoY. NII registered a robust growth of 11% and non-interest income by 171%. On the top line, our total business grew by 24% supported by the deposit growth of 21% and net advance growth of 27%. The gold loan portfolio registered a YoY growth of 32%. The key ratios like NIM, CRAR, RoA, etc continue to be strong. Our asset quality ratios are stable and better compared to Q2FY23. We are now taking rapid strides in strengthening the building blocks that will help us in leveraging our full-service banking license and build a 360-degree PAN India franchise across Wholesale, SME, Retail, and Gold Loan Businesses. Our primary focus is to build a solid liability franchise by acquiring quality customers and onboarding them with all banking products and services. We are significantly investing in leadership, people, distribution, and products while transforming the technology stack to provide our valued customer's good service and a 360-degree banking facility." Result PDF