CSB Bank reported 36.41% growth yoy in revenues in the Dec-20 quarter at Rs599.24cr. The bank saw yoy doubling of treasury income and a sharp spike in interest earned from retail lending. However, the income from wholesale banking was tepid to weak in Dec-20.
For the Dec-20 quarter, the operating profits were sharply up 160.48% at Rs182.36cr. This growth was largely on the back of improved net interest margins (NIM) and a sharp spike in investment income. Hence the overall yields were much better. Operating margin or OPM almost doubled from 15.94% in Dec-19 quarter to 30.43% in the current quarter.
Profit after tax (PAT) for the Dec-20 quarter was up 88.52% at Rs53.05cr. This was a despite a four-fold spike in asset provisions to Rs111cr in the Dec-20 quarter. PAT margins expanded by from 6.41% in Dec-19 quarter to 8.85% in Dec-20 quarter.
Financial highlights for Dec-20 compared yoy and sequentially
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CSB Bank |
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Rs in Crore |
Dec-20 |
Dec-19 |
YOY |
Sep-20 |
QOQ |
|
Total Income (Rs cr) |
₹ 599.24 |
₹ 439.29 |
36.41% |
₹ 567.55 |
5.58% |
|
Operating Profit (Rs cr) |
₹ 182.36 |
₹ 70.01 |
160.48% |
₹ 172.81 |
5.53% |
|
Net Profit (Rs cr) |
₹ 53.05 |
₹ 28.14 |
88.52% |
₹ 68.90 |
-23.00% |
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Diluted EPS (Rs.) |
₹ 3.06 |
₹ 1.63 |
|
₹ 3.97 |
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Operating Margins |
30.43% |
15.94% |
|
30.45% |
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Net Margins |
8.85% |
6.41% |
|
12.14% |
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Gross NPA Ratio |
1.77% |
3.22% |
|
3.04% |
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Net NPA Ratio |
0.68% |
1.98% |
|
1.30% |
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Return on Assets |
0.96% |
0.60% |
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1.22% |
|
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Capital Adequacy |
21.02% |
23.00% |
|
19.69% |
|
Key takeaways from the Dec-20 quarter results
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CSB Bank has seen strong traction on the treasury income and on retail banking. While the growth in profits has been strong on a yoy basis, the net profit is actually down on a sequential basis, largely on account of higher provisions made.
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On account of the provisions made, the gross NPAs stand at just 1.7&% compared to 3.04% in the sequential last quarter. Net NPAs are also sharply lower at 0.68% compared to 1.3% in the previous quarter, indicating that most of the bad assets are provided for.
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The capital adequacy ratio at 21% is extremely comfortable while the return on assets at 0.96% is well above the median industry average.
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