CSB Bank announced Q3FY23 results: Q3FY23 & 9MFY23: Profit After-tax: Bank recorded a net profit of Rs 391 crore during the nine months ended Q3FY23 vs a profit of Rs 328 crore for the same period last year. Net profit improved by 19% on a YoY basis. The entire outstanding Security Receipts balance as on Q3FY23 has been fully provided for. The annualized RoA improved from 1.83% to 2.00% YoY for the nine months ended 9MFY23. Strong Operating Performance: Q3FY23 operating profit of bank is Rs 193 crore as against Rs 148 crore during Q3FY22 – the YoY growth being 31%. The operating profit for the nine months ended Q3FY23 stood at Rs 506 crore as against Rs 472 crore for the corresponding previous period- up by 7%. Net Interest Income (NII) for 9 months ended 9MFY23 stood at Rs 985 crore posting an increase of 16% YoY. In Q3FY23, the NII stood at Rs 350 crore as against Rs 303 crore in Q3FY22 with an increase of 15%. Non-Interest Income ex treasury for Q3FY23 posted a growth of 65% over Q3FY22 mainly due to increase in processing fees and other fee income. Other income for the nine months ended Q3FY23 stood at Rs 195 crore (PSLC income: Rs 4 crore) as against Rs 170 crore (PSLC income: Rs 33 crore) for nine months ended 9MFY23. Cost Income Ratio for Q3FY 23 stood at 56.00% as against 57.46% for Q2FY23. Cost income ratio for the nine months ended Q3FY23 was at 56.98% as against 54.33% as on 9MFY23. The impact was majorly created by HR expansion (1516 Nos), Lower PSLC income (impact-Rs 30 crore) and Treasury Profits (impact-Rs 18 crore including SR w/o). Healthy Asset Quality & Provisioning Gross NPA and Net NPA ratios have improved to 1.45% and 0.42% as on Q3FY23 over the previous quarters. PCR continues to be above 90%. Comfortable Liquidity Position - Liquidity Coverage Ratio is comfortable at 124% Total Deposits grew by 19% YoY. The CASA book grew from Rs 6,587 crore to Rs 7,126 crore YoY (Up by 8%). The CASA ratio stood at 31.44% as on Q3FY23. Advances (Net) grew by 26% YoY to Rs 18,457 crore as on Q3FY23 with gold loan portfolio powering the growth at 51% YoY. Speaking about the performance Mr. Pralay Mondal, Managing Director & CEO said, “Though global economy is marred with uncertainties, Indian financial system is resilient, robust and stable. Bank credit is growing in double digits for 9 months now. It gives us great pleasure to announce that we could outperform the industry trends in terms of both deposits and advances growth and record strong bottom line numbers. Our bank has achieved another milestone, with the business numbers crossing Rs 40,000 crore, Rs 42,006 crore to be exact contributed by the loan book growth of 26% YoY coupled with the 19% deposit growth. In terms of profitability, despite the lower treasury profits/PSLC income, SR write offs etc, the Q3FY23 operating profit recorded a growth of 31% supported by growth in NII and other income. The key indicators like NIM, CRAR, RoA, NPA ratios etc continue to be strong. In the coming quarter while leveraging our core competencies in the gold loan business, we will put in more focus to grow the retail segment, both the retail liabilities and assets (other than gold) - with various new/revamped products and process improvements happening and proposed. We believe that with the new credit card launch in partnership with One Card, we will be able to further penetrate into the retail segment. We are perfecting the retail structure with the right manpower, policy roll outs, technology, collection framework, partnership tie ups etc. While all these will take some time to mature, we are already into business for segments like Personal Loans, Education Loans, Auto Loans, Commercial Vehicle etc SME & Corporate focus will continue with due caution. Boosting the fee income is in the top priority list. A new transaction banking vertical has been set up towards focusing on the trade and forex income. Bank has launched two new trade forex current account variants as well. With all these falling in place, we look forward to improve upon our performance in both the topline as well as bottom line parameters in the coming quarters. Result PDF
CSB Bank announced Q2FY23 results: Profit After-tax: Bank could cross the double century mark by recording a net profit of Rs 235.07 crore in H2 FY 23 vis a vis a profit of Rs 179.57 crore for the same period last year. Despite the prevailing macroeconomic environment, which is volatile and challenging, Net profit improved by 5% on a sequential basis also from Rs 114.52 crore to Rs 120.54 crore. Bank continued its accelerated provisioning policy during this quarter as well. RoA improved from 1.53% in H1FY22 to 1.81% in H1FY23 while QoQ the sequential improvement is from 1.75% to 1.87%. Operating Profit of the bank is at Rs 157.35 crore for the quarter ended 30.09.2022 vis a vis Rs 149.38 crore as on 30.09.2021 and Rs 154.72 crore as on 30.06.2022. The operating profit for the half year ended 30.09.2022 is Rs 312.07 crore vis a vis Rs 324.12 crore impacted by Treasury Losses and draining of PSLC income Net Interest Income (NII) for H1FY23 stood at Rs 635.66 crore posting an increase of 16% over H1 FY 22. In Q2 FY 23, the NII stood at Rs 324.97 crore as against Rs 278.38 crore in Q2 FY 22 or by17 %. Non-Interest Income ex treasury posted a growth of 48% sequentially backed by improved Banca commission, processing fee, other commission income etc. Other income for the half year ended 30.09.2022 is Rs 111.23 crore (PSLC income-: Nil) as against Rs 119.80 crore (which includes PSLC income of Rs 33.40 crore) as on 30.09.2021. Cost Income Ratio: as on 30.09.2022 is 57.57% as against 52.14% as on 30.09.2021. Sequentially, Cost income ratio improved from 57.67% to 57.46% on QoQ basis Asset Quality & Provisioning Both GNPA and NNPA ratios have improved on QoQ basis. PCR continues to be above 90% The capital Adequacy Ratio is at 25.14 %, which is well above the regulatory requirement. The leverage ratio is at 9.21% as on 30.09.2022 Comfortable Liquidity Position. The liquidity Coverage Ratio is comfortable at 125.76% Total Deposits grew by 10.13% YoY and CASA ratio stood at 34.27% as on 30.09.2022 as against 32.58% as on 30.09.2021 Advances (Net) grew by 24.15% YoY to Rs 17468.33 crore as on Q2FY23 Mr. Pralay Mondal, Managing Director & CEO said, “The current macro-economic scenario is quite volatile and challenging. In the midst of all the prevalent adversities, we kept our focus firm and could do well in the second quarter of FY 23. This quarter witnessed a repo hike of 100 bps from 4.90% to 5.90%. The prudent treasury strategies helped us with minimal shocks. While our deposit growth was in line with the industry trend, we could outgrow in the advance portfolio. Despite having a negative impact of about Rs 33 Crs due to the lack of opportunities in the PSLC market, the boosting up of other income streams helped us to contain the reduction to a decent extent. In terms of profitability, bank could cross the Rs 200 Cr mark in H2 FY 23 while keeping the provision buffers intact. The key ratios like NIM, CRAR, LCR, RoA etc continue to be strong. In the coming quarters our focus will be more on liabilities given the CD ratio crossing 80% in H1. NR business, Remittance etc will have tremendous opportunities in H2. Set up of new retail verticals such as HCF, CE/CV etc is also planned for H2. Our SME& Corporate teams have definite growth plans for the upcoming half year. Our endeavor would be to improve continuously quarter on quarter in terms of both topline and bottom-line parameters”. Result PDF