CSB Bank (CSBBANK) Q4 10/11 earnings summary

Executive summary

• FY2010-11 total business reached ₹15,028.22 crore; deposits grew 25.04% and advances 39.25% YoY, without opening new branches during the year.

• Net profit rose to ₹12.18 crore from ₹1.65 crore; NII increased to ₹248.15 crore from ₹122.80 crore, supported by business growth and lending repricing.

• The 90-year milestone year included a ₹147.40 crore rights-related capital infusion, expanded customer services and continued investment in technology.

Financial highlights

• Deposits ₹8,725.67 crore, advances ₹6,302.55 crore, total assets ₹9,829.07 crore and net worth ₹470.14 crore at March 31, 2011.

• NII ₹248.15 crore versus ₹122.80 crore; operating profit ₹33.62 crore versus ₹7.70 crore; net profit ₹12.18 crore versus ₹1.65 crore.

• Total income ₹836.64 crore versus ₹651.92 crore; interest earned ₹762.13 crore versus ₹577.96 crore; operating expenses ₹289.04 crore versus ₹189.07 crore.

• Provisions and contingencies were ₹21.44 crore versus ₹6.04 crore; wage settlement led to ₹24.73 crore of salary arrears, of which ₹11.04 crore was charged after existing provision.

• Recommended dividend of 10% on equity shares, subject to shareholder approval; proposed dividend including tax was ₹3.67 crore.

Outlook and guidance

• Growth strategy for FY2011-12 targets continued expansion with customer service and asset quality priorities; approval had been obtained to open 41 branches.

• Internet and mobile banking were planned for launch within weeks of the June 2011 shareholder letter, alongside real-time online banking implementation.

• Priorities include mobilizing low-cost deposits, deploying funds effectively, expanding pan-India presence and growing insurance and mutual-fund distribution.