CSB Bank Q1 net up 174% to Rs 54 crore

Kerala-based CSB Bank on Wednesday reported a 174% year-on-year increase in its first quarter net profits to Rs 53.6 crore. The lender had reported a net profit of Rs 19.5 crore in the year ago period and a net loss of Rs 59.7 crore in Q4 of FY20.

The operating profit of the bank increased from Rs 40.1 crore in the June quarter last fiscal to Rs 129.1 crore in corresponding quarter this financial year, a year-on-year increase of 221.85%. It also registered an increase of 20.66% over Q4 FY 20 due to improved NII and treasury profits.

During the quarter in review, the bank earned Net Interest Income (NII) of Rs 185.3 crore as against Rs 132.5 crore, a growth of 40%. Non-Interest Income stands at Rs 74.3 crore as against Rs 30.2 crore for the same period as compared to last year, an increase of 146% on the back of improved treasury gains

Gross NPA as percentage of advances stood at 3.51% in June quarter this fiscal whereas it was 4.71% in corresponding quarter of last financial year.

Speaking about the performance, CV Rajendran, managing director & CEO, said “The results of the first quarter of FY21 underlines the fact that the bank is now well entrenched in earnings growth path despite testing times. Rs 54 crore net profit is the highest quarterly profit declared by our bank. This is after making healthy Covid-19 related provisions for Standard Assets on a proactive basis. We have used to the maximum advantage the TLTRO window of RBI and the results are evident in the improved NIM, which has crossed 4%.”

“Going forward, the key focus this fiscal will be to grow the gold loan book taking advantage of the relaxations in LTV by RBI while remaining ever vigilant of gold price volatility. New Retail banking team headed by Praloy will be in place by this quarter end and we expect green shoots on non-gold retail from the third quarter,” he added.