CSB Bank (CSBBANK) Q1 2025 earnings summary

Executive summary

• Net profit for the quarter was INR 113 crore, with a provision buffer of INR 182 crore above regulatory requirements.

• Achieved 25% year-over-year growth in balance sheet size, reaching ₹36,583 crore in Q1 FY25.

• Net interest margin (NIM) stood at 4.36%, impacted by higher funding costs and regulatory changes on penal charges.

• Deposit growth was 22% year-over-year, outpacing industry growth of 11%.

• Unaudited financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board and joint statutory auditors, who issued an unqualified review report.

Financial highlights

• Gross NPA ratio at 1.69%, net NPA at 0.68%, and provision coverage ratio at 82.53%.

• Yield on advances for Q1 FY25 was 11.25%, up 7 bps year-over-year.

• Book value per share at INR 217; EPS at INR 26.2.

• Net interest income was ₹362 crore, down 1% year-over-year; non-interest income surged 43% to ₹172 crore.

• Cost-to-income ratio increased to 67.69% from 64.09% in Q1 FY24.

Outlook and guidance

• NIM guidance for FY25 remains at 4.5%-4.8% despite Q1 compression.

• ROA guidance maintained at 1.5%-1.8% for the full year.

• Management expects NIM and ROA to improve from Q2 onwards as one-off impacts subside.

• Focus on expanding pan-India operations and building a new-age technology platform as part of the SBS 2030 strategy.

• Transition to new RBI investment portfolio norms from April 1, 2024, with fair valuation gains recognized in reserves.