CSB Bank
NII growth eases: Interest income increased 21% to Rs 1338.97 crore, while interest expenses moved up 21% to Rs 829.04 crore in Q2FY2027. NII improved 20% to Rs 509.93 crore in Q2FY2027.
Margins improve qoq: The bank has shown 6 bps YoY increase in cost of deposits to 6.43%, while yield on advances declined 3 bps YoY to 10.92% in Q2FY2027. NIM was flat YoY, while rose 15 bps qoq to 3.81% in Q2FY2027.
Non-interest income declines on high base effect: The non-interest income of the bank declined 22% to Rs 273.51 crore in Q2FY2027. Bank has posted 20% decline in core fee income to Rs 275 crore, while the treasury segment witnessed losses of Rs 2 crore in Q2FY2027.
Expense ratio deteriorates: The operating expenses of the bank increased 3% to Rs 507.68 crore, as other expenses fell 9% to Rs 241.43 crore, while employee expenses rose 17% to Rs 266.25 crore in Q2FY2027. Cost to income ratio deteriorated to 64.8% in Q2FY2027 compared with 63.9% in Q2FY2026. Operating Profit fell 1% to Rs 275.76 crore.
Provisions and contingencies decline: The bank has shown 53% decline in provisions to Rs 30 crore. The loan loss provisions dipped 56% to Rs 24 crore, while other provisions fell 25% to Rs 6 crore in Q2FY2027.
PBT increased 14% to Rs 245.67 crore in Q2FY2027. Effective tax rate declined to 25.6% in Q2FY2027 from 25.7% in Q2FY2026. Net Profit increased 14% YoY to Rs 182.72 crore in Q2FY2027.
Asset quality improves: The bank has improved asset quality in Q2FY2027.
The fresh slippage of loans stood at Rs 66 crore in Q2FY2027 compared with Rs 98 crore in previous quarter and Rs 94 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 25 crore and upgrades were at Rs 26 crore, while the write-off of loans was at Rs 59 crore in Q2FY2027. Provision coverage ratio improved to 87.65% at end September 2026 compared to 86.83% a quarter ago and 84.14% a year ago. The capital adequacy ratio of the bank stood at 19.6% with Tier I ratio at 18.5% at end September 2026. The risk weighted assets of the bank has increased 27% YoY to Rs 27419 crore end September 2026.| Asset Quality Indicators: CSB Bank | ||||||||
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| Sep-26 | Jun-26 | Mar-26 | Dec-25 | Sep-25 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 670.58 | 715.42 | 669.78 | 729.42 | 628.75 | -6 | 0 | 7 |
| Net NPA (Rs Crore) | 139.58 | 157.68 | 158.23 | 245.66 | 178.46 | -11 | -12 | -22 |
| % Gross NPA | 1.58 | 1.75 | 1.66 | 1.96 | 1.81 | -17 | -8 | -23 |
| % Net NPA | 0.33 | 0.39 | 0.40 | 0.67 | 0.52 | -6 | -7 | -19 |
| % PCR | 87.65 | 86.83 | 86.33 | 79.87 | 84.14 | 82 | 132 | 351 |
| % CRAR - Basel III | 19.55 | 19.96 | 20.66 | 19.41 | 20.99 | -41 | -111 | -144 |
| % CRAR - Tier I - Basel III | 18.54 | 18.96 | 18.93 | 17.66 | 19.19 | -42 | -39 | -65 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
Business Highlights:
Business growth eases: The business of the bank has increased at a slower pace of 20% YoY to Rs 89272 crore end September 2026, as advances growth eased to 22% to Rs 42383 crore and deposits growth moderated to 18% to Rs 46889 crore at end September 2026. With the faster growth in advances, the credit to deposit ratio rose to 90.4% at end September 2026 from 87.5% at end September 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 6% YoY to Rs 8889 crore at end September 2026. The current account deposits moved up 10% to Rs 1887 crore, while saving account deposits increased 5% to Rs 6928 crore end September 2026. The CASA ratio eased to 19.0% at end September 2026 compared to 21.2% at end September 2025, while declined from 19.4% a quarter ago. The term deposits have increased 22% to Rs 38000 crore end September 2026.
Non-gold loan growth picks up: Within the loan book, the retail loans increased 17% YoY to Rs 26069 crore at end September 2026, while MSME credit rose 4% to Rs 4563 crore. The corporate credit has surged 44% to Rs 11751 crore end September 2026. The share of retail, agriculture and MSME (RAM) eased to 72.3% at end September 2026 compared to 76.5% at end September 2025. Gold loan growth moderated to 36% at Rs 22303 crore, while the non-gold loan growth improved to 10% at Rs 20080 crore at end September 2026 from 5% at end June 2026.
Investment book of the bank increased 15% YoY to Rs 12402 crore at end September 2026. The SLR book moved up 17% to Rs 11728 crore, while non SLR book slipped 9% to Rs 674 crore at end September 2026. The AFS book galloped 16% to Rs 7352 crore, while HTM book increased 11% to Rs 4738 crore at end September 2026. The duration of the overall investment portfolio stood at 4.83 years end September 2026 compared with 5.19 years at end September 2025. The duration of the AFS investment portfolio stood at 5.01 years end September 2026 compared with 4.97 years at end September 2025.
Branch expansion: The bank has added 4 branches and 9 ATMs in Q2FY2027, taking overall tally to 872 branches and 844 ATM`s end September 2026.
Book value of the bank stood at Rs 290.2 per share at end September 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 282.1 per share at end September 2026.
Financial Performance H1FY2027:
Bank has posted 19% increase in net profit to Rs 332.76 crore in the half year ended September 2026 (H1FY2027). The net interest income increased 23% to Rs 988.59 crore, while non-interest income fell 15% to Rs 502.26 crore, leading net total income to increase 7% to Rs 1490.85 crore in H1FY2027. The operating expenses increased by 7% to Rs 964.32 crore, while provision and contingencies dipped 36% to Rs 79.12 crore. PBT increased 19% to Rs 447.41 crore in H1FY2027. The cost-to-income ratio rose to 64.7% in H1FY2027 compared to 64.2% in H1FY2026. An effective tax rate eased to 25.6% in H1FY2027 compared to 25.7% in H1FY2026. The net profit has increased 19% to Rs 332.76 crore in H1FY2027.| CSB Bank: Results | |||||||||
| Particulars | 2609 (3) | 2509 (3) | Var % | 2609 (6) | 2509 (6) | Var % | 2603 (12) | 2503 (12) | Var % |
| Interest Earned | 1338.97 | 1109.16 | 21 | 2626.29 | 2150.10 | 22 | 4505.19 | 3597.14 | 25 |
| Interest Expended | 829.04 | 685.60 | 21 | 1637.70 | 1347.13 | 22 | 2784.87 | 2120.97 | 31 |
| Net Interest Income | 509.93 | 423.56 | 20 | 988.59 | 802.97 | 23 | 1720.32 | 1476.17 | 17 |
| Other Income | 273.51 | 349.20 | -22 | 502.26 | 593.91 | -15 | 1176.60 | 972.06 | 21 |
| Net Total Income | 783.44 | 772.76 | 1 | 1490.85 | 1396.88 | 7 | 2896.92 | 2448.23 | 18 |
| Operating Expenses | 507.68 | 493.46 | 3 | 964.32 | 897.27 | 7 | 1811.53 | 1537.99 | 18 |
| Operating Profits | 275.76 | 279.30 | -1 | 526.53 | 499.61 | 5 | 1085.39 | 910.24 | 19 |
| Provisions & Contingencies | 30.09 | 63.65 | -53 | 79.12 | 124.44 | -36 | 234.23 | 110.71 | 112 |
| Profit Before Tax | 245.67 | 215.65 | 14 | 447.41 | 375.17 | 19 | 851.16 | 799.53 | 6 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 245.67 | 215.65 | 14 | 447.41 | 375.17 | 19 | 851.16 | 799.53 | 6 |
| Provision for tax | 62.95 | 55.32 | 14 | 114.65 | 96.24 | 19 | 217.98 | 205.73 | 6 |
| PAT | 182.72 | 160.33 | 14 | 332.76 | 278.93 | 19 | 633.18 | 593.80 | 7 |
| EPS*(Rs) | 42.1 | 37.0 | 38.3 | 32.1 | 36.5 | 34.2 | |||
| Equity | 173.5 | 173.5 | 173.5 | 173.5 | 173.5 | 173.5 | |||
| Adj BV (Rs) | 282.1 | 250.5 | 282.1 | 250.5 | 263.1 | 239.7 | |||
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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