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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."
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