CSB Bank (CSBBANK) Q3 25/26 earnings summary

Executive summary

• Operating profit grew 32% YoY to ₹29,211 lakhs (₹292 crore), with net profit flat at ₹15,267 lakhs (₹153 crore) for Q3 FY26.

• Gross advances rose 29% YoY to ₹37,161 crore; deposits increased 21% YoY to ₹40,460 crore.

• Gold loan and wholesale banking segments drove advances growth, each exceeding 40% YoY.

• Asset quality saw a slight deterioration, with GNPA at 1.96% and NNPA at 0.67%, but both within guidance.

• Management expects upgrades and recoveries in coming quarters, with Q3 slippages seen as a peak.

Financial highlights

• Net Interest Income (NII) rose 21% YoY to ₹453 crore; other income up 26% YoY to ₹276 crore, making up 19% of total income.

• Cost-to-Income Ratio improved to 59.97% in Q3 FY26, lower both sequentially and YoY.

• Net Interest Margin (NIM) reached 3.86%, the highest for the fiscal year.

• Return on Assets (ROA) for the quarter was 1.22%; Return on Equity (ROE) at 13.38%.

• Book value per share stood at ₹269; EPS for the quarter was ₹8.80.

Outlook and guidance

• Asset growth targeted at 25%+ for FY 2027, with deposit growth above 20%.

• ROA and ROE targets for FY 2027 are 1.5% and 15%, respectively.

• Cost-to-Income Ratio expected to remain around 60% for another year, then decline sharply from FY 2028.

• Management expects credit costs and slippages to normalize, with Q3 seen as the peak.

• Long-term vision to become a mid-sized, new-age bank with national presence by 2030, driven by the SBS 2030 strategy.