BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
CSB Bank reported lower net interest income growth of 15% YoY, impacted by 40 basis points sequential decline in net interest margin to 5.4%. However, higher other income and lower credit costs aided pre-provision operating profit and profit after tax growth of 42%/20% YoY, with superior return on asset at 2.2% for the quarter (ahead of estimates).
Though cost of fund increased by 55 basis points QoQ, they were up only 5 bps on a full year basis.
Loan growth at 11% QoQ was broad based, with small and medium enterprise book up 9% QoQ, corporate 10%, and gold at 10%. Core fee lines showed significant traction, up 44% QoQ. Excluding treasury, other income/assets averaged at 1.2% in FY23 versus 1% in FY22 despite muted priority sector lending certificates gains.
CSB Bank's asset quality metrics continue to fare well with annualised slippages at 0.7% and strong recoveries aiding negative credit costs (down 18 bps).
We factor in higher other income offset by slightly higher opex, with earnings upgrade of 6-8% over FY24/25E.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
