CSB Bank (CSBBANK) Q2 2025 earnings summary

Executive summary

• Net profit for Q2 FY25 reached INR 138 crores (₹13,841 lakhs), up 22% sequentially and 4% year-over-year, with stable asset quality and robust capital ratios maintained.

• Balance sheet size increased 26% YoY to ₹39,464 crore, with total business up 23% and profit after tax at ₹138 crore.

• The bank expanded its pan-India presence to 802 branches and 770 ATMs, adding 23 new branches in H1 FY25.

• Strategic initiatives under the SBS 2030 plan focus on digital transformation, gold loan and retail banking growth, and technology upgrades.

• Financial statements for Q2 FY25 were reviewed and approved with an unqualified report, prepared under Indian GAAP and regulatory guidelines.

Financial highlights

• Deposits grew 25% YoY to ₹31,840 crore, advances up 20% YoY to ₹26,871 crore, and gold loan portfolio expanded 28% YoY.

• Net interest margin (NIM) sustained at 4.3% for the quarter; net interest income rose 7% YoY to ₹367 crore.

• Return on Assets (ROA) at 1.5%, Return on Equity (ROE) at 14.53%, and cost-to-income ratio increased to 66.13% in H1 FY25.

• CASA ratio marginally above 24%; book value per share at INR 229; EPS for the quarter at INR 13.65.

• Fee income constitutes 17-18% of total income, with potential to reach 19-20%.

Outlook and guidance

• Loan growth guidance for FY25 is to outperform system trends by 30-50%, with similar momentum expected in FY26.

• NIM guidance revised to 4.3%-4.5% due to regulatory impact; ROA guidance maintained at 1.5%-1.8%.

• Credit cost expected to remain below 20 basis points in the near term.

• Major investments in technology and infrastructure, including Oracle Flexcube, are expected to drive future growth and efficiency.

• Pillar 3 disclosures and Basel III ratios are available on the bank's website.