CSB Bank (CSBBANK) Q4 15/16 earnings summary

Executive summary

• FY16 net loss widened to ₹149.72 crore from ₹53.17 crore; accelerated provisioning and muted credit growth weighed on profitability.

• CASA, NR deposits and retail lending grew, while total deposits were nearly flat and advances contracted under a cautious lending approach.

Financial highlights

• Total income was ₹1,587.57 crore vs ₹1,671.90 crore; interest earned ₹1,482.89 crore vs ₹1,544.55 crore; other income ₹104.68 crore vs ₹127.34 crore.

• Net interest income fell to ₹323.61 crore from ₹355.98 crore; operating loss was ₹3.75 crore vs operating profit of ₹50.08 crore.

• Loss before tax was ₹228.28 crore vs ₹82.16 crore; net loss ₹149.72 crore vs ₹53.17 crore; EPS was -₹23.98 vs -₹10.50.

• Provisions and contingencies, excluding tax, were ₹224.53 crore vs ₹132.24 crore; income tax provision was a credit of ₹78.55 crore vs ₹29.00 crore.

Outlook and guidance

• FY17 priorities include further capital raising, technology upgrades, process centralization, broader products, stronger branding and branch infrastructure.

• Management expects to move from consolidation into transformation and pursue sustainable, cautious business growth, supported by fresh capital and technology investment.