CSB Bank Q4 Results: Net profit rises 26% to Rs 190 crore; margins shrink

Fairfax Group-backed CSB Bank on Monday reported a 26% year on-year in net profit at Rs 190.44 crore for the fourth quarter of the fiscal, helped by higher earnings from fee income and treasury profits.

The net profit was Rs 151.5 crore in the year ago period.

The bank’s other income, which includes earnings from third-party businesses and treasury operations, nearly doubled at Rs 382 crore against Rs 197 crore earlier. The net interest income however shrunk 4% at Rs 371 crore on account of higher interest outgo.

Its net interest margin for the quarter fell to 3.75% as compared with 5.04% in the year-ago period.

“We were ready to sacrifice margin for growth. The margin has bottomed out,” managing director Praloy Mondal told ET.

The bank’s operating profit for the quarter rose 39% year-on-year at Rs 317 crore against Rs 228 crore in the year-ago period.Its advances grew by 29% year-on-year to Rs 31507 crore at the end of March 31, supported by a 35% expansion in gold loans. Gold loans account for 44% of the portfolio. Unsecured loans contribute merely 3.4% of the total portfolio.Its total deposit mobilisation grew 24% year-on-year to 36,861 crore with the current and savings account ratio being at 24%.

“For the next six months, we will be focusing on a complete technology transformation in the bank. Then we can run the bank as a full-service franchise. We are keenly waiting for this.” Mondal said.