CSB Bank (CSBBANK) investor relations material

Executive summary

• Q1 FY27 profit after tax reached ₹150 crore (₹15,004 lakhs), up 27% year-over-year, with operating profit and net interest income also rising significantly.

• Balance sheet size grew 20% year-over-year to ₹58,101 crore, with gross advances up 24% to ₹40,867 crore and deposits up 26% to ₹45,415 crore.

• Gold loans comprise 54% of the portfolio, with a strategic plan to reduce this to 30% by 2030 as other segments grow.

• Technology transformation completed, enabling new product launches, improved transaction banking, and digital penetration reaching 95.96% of transactions.

• Unaudited financial results for Q1 FY27 were reviewed and approved by the Board and auditors, with results prepared per Indian accounting standards and RBI/SEBI guidelines.

Financial highlights

• Net interest income: ₹479 crore, up 26% year-over-year; total income for Q1 FY27 was ₹151,607 lakhs.

• Cost-to-income ratio: 64.55%-64.70%, marginally lower year-over-year.

• NIM: 3.66% (vs. 3.54% last year); ROA: 1.09% (vs. 1.03%).

• EPS: ₹47 for Q1 FY27; book value per share: ₹289.

• Other income fell 7% due to lower treasury gains; core fee income impacted by lower insurance and processing fees.

Outlook and guidance

• Full-year ROA guidance maintained at 1.3%-1.5%, with internal target of 1.5%.

• NIM guidance for the year is 3.75%, with expectations for improvement as funding mix shifts.

• Growth guidance for wholesale and gold loans is 30%-40%; overall loan growth targeted at 25%+.

• Strategic focus on scaling to a mid-sized, new-age bank with national presence by 2030, emphasizing digital transformation and risk management.

• Continued investments in technology and infrastructure with defined payback periods.