Private sector lender CSB Bank reported a 26.5% year-on-year rise in its standalone net profit for the quarter ended June 2026 (Q1FY27), supported by healthy growth in net interest income, strong business expansion and lower provisions.
The bank posted a net profit of Rs 150 crore in the June quarter, compared with Rs 119 crore in the corresponding period last year.
Net interest income (NII) increased 26.2% YoY to Rs 479 crore, from Rs 379 crore a year ago, while interest income rose 23.7% to Rs 1,287 crore, against Rs 1,041 crore in Q1FY26.
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Operating profit came in at Rs 251 crore, marking a 13.8% increase from Rs 220 crore in the year-ago quarter. Meanwhile, provisions declined 19.3% YoY to Rs 49 crore, compared with Rs 61 crore a year earlier, aiding the bank's earnings growth.
On the business front, total deposits grew 26% YoY to Rs 45,415 crore as of June 30, 2026, from Rs 35,935 crore a year ago, while the CASA ratio stood at 19%. Net advances rose 24% YoY to Rs 40,309 crore, compared with Rs 32,552 crore in the year-ago period, driven by a 47% growth in gold loans and a 37% increase in wholesale advances.
Operational efficiency also improved during the quarter. The cost-to-income ratio (CIR) eased to 64.55% in Q1FY27 from 64.70% in Q1FY26, while the cost-to-assets ratio improved to 3.31% from 3.49% a year ago.
On the asset quality front, gross non-performing assets (GNPA) stood at 1.75% at the end of June 2026, compared with 1.66% a year ago, indicating a deterioration of around 9 basis points. Net non-performing assets (NNPA) improved marginally to 0.39% from 0.40% in the corresponding quarter last year.
Commenting on the results, Managing Director & CEO Pralay Mondal said the bank's deposit and advance growth of 26% and 24%, respectively, significantly outpaced industry averages during the quarter. He added that the lender also improved across key financial metrics, including net interest margin (NIM), return on assets (RoA), return on equity (RoE), cost-to-income ratio, GNPA and NNPA, compared with the year-ago period.
Mondal said the bank's liquidity position remains comfortable, with all key financial and regulatory ratios well within guidance.
Looking ahead, he said CSB Bank will focus on improving productivity and unlocking the benefits of its ongoing technology transformation initiatives, while remaining on track to achieve its SBS 2030 strategic vision.
On the bourses, however, the stock tumbled 7.98% to an intraday low of Rs 340.60. At 1:20 pm, CSB Bank share price was trading down 4.69% at Rs 352.80. By comparison, BSE Sensex was trading 0.98% lower at 76,714 levels.
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