AgenciesPrivate lender on Thursday reported a 87 per cent jump in its June quarter net profit at Rs 114.5 crore, driven by a sharp reduction in money set aside for loan losses.
The bank had reported a net profit of Rs 61 crore in the year-ago period.
However, the profit in the April-June period of FY23 has slid from Rs 130 crore registered in the preceding January-March quarter.
It's core net interest income grew 16 per cent to Rs 310.7 crore on the back of a 17 per cent loan growth and an expansion in the net interest margin to 5.17 per cent from the year-ago period's 5.08 per cent.
The bank's non-interest income declined by 23 per cent to Rs 54.9 crore due to reverses on the treasury operations side as the hardening of yields led to mark-to-market losses on investments.
The fresh slippages came down to Rs 37 crore during the quarter, and the gross non performing assets ratio reduced to 1.79 per cent from the 4.88 per cent level in the year-ago period.
The overall provisions reduced to Rs 40 crore from Rs 114 crore in the year-ago period. The bank's chief financial officer Divakara B K said that on the loan loss provisions front, there was a write-back of Rs 1.2 crore as against a setting aside of Rs 97 crore in the year-ago period, which helped the bottom line.
He said the GNPAs (Gross Non-Performing Assets) were high in the year-ago period because of reverses on the gold loan advances, which have now stabilised. The bank grew its gold loan book by 26 per cent and the same constitutes 41.6 per cent of its overall loan now.
The bank's deposit growth came at 8.65 per cent and the share of the low-cost current and savings account deposits now stands at 35 per cent.
Operational expenses went up to Rs 210 crore during the quarter as against Rs 164 crore in the year-ago period, but according to Divakara, it should be seen as an investment because the bank is expanding its network.
CSB Bank is aiming to open at least 100 new branches in FY23 as it has done in the previous two fiscals as it plans to become a pan-India player, Divakara said.
The bank scrip closed 2.05 per cent up at 209.35 a piece on the BSE, as against gains of 0.51 per cent in the benchmark on Thursday.
The bank had reported a net profit of Rs 61 crore in the year-ago period.
However, the profit in the April-June period of FY23 has slid from Rs 130 crore registered in the preceding January-March quarter.
It's core net interest income grew 16 per cent to Rs 310.7 crore on the back of a 17 per cent loan growth and an expansion in the net interest margin to 5.17 per cent from the year-ago period's 5.08 per cent.
The bank's non-interest income declined by 23 per cent to Rs 54.9 crore due to reverses on the treasury operations side as the hardening of yields led to mark-to-market losses on investments.
The fresh slippages came down to Rs 37 crore during the quarter, and the gross non performing assets ratio reduced to 1.79 per cent from the 4.88 per cent level in the year-ago period.
The overall provisions reduced to Rs 40 crore from Rs 114 crore in the year-ago period. The bank's chief financial officer Divakara B K said that on the loan loss provisions front, there was a write-back of Rs 1.2 crore as against a setting aside of Rs 97 crore in the year-ago period, which helped the bottom line.
He said the GNPAs (Gross Non-Performing Assets) were high in the year-ago period because of reverses on the gold loan advances, which have now stabilised. The bank grew its gold loan book by 26 per cent and the same constitutes 41.6 per cent of its overall loan now.
The bank's deposit growth came at 8.65 per cent and the share of the low-cost current and savings account deposits now stands at 35 per cent.
Operational expenses went up to Rs 210 crore during the quarter as against Rs 164 crore in the year-ago period, but according to Divakara, it should be seen as an investment because the bank is expanding its network.
CSB Bank is aiming to open at least 100 new branches in FY23 as it has done in the previous two fiscals as it plans to become a pan-India player, Divakara said.
The bank scrip closed 2.05 per cent up at 209.35 a piece on the BSE, as against gains of 0.51 per cent in the benchmark on Thursday.
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