Net profit increased 42% on QoQ basis. This is after providing 25% for stressed assets other than gold even with a one day default. Profit before tax soared 13.91% to Rs 81.52 crore in Q1 FY21 as against Rs 71.56 crore in Q1 FY20. The Q1 earnings was declared during trading hours today, 22 July 2021.
Due to the COVID-19 second wave spread and the resultant restrictions, there was a slowdown in the economic activity and the portfolio stress aggravated. The lockdowns and intermittent holidays impacted both fresh pledges and releases. While the bank was able to manage the NPA in loans other than gold, it faced some challenges in the gold loan portfolio. As on 30 June 2021, restructured advances as a percentage of total advances is only 0.48%.
The bank's gross non-performing assets (NPAs) stood at Rs 686.39 crore as on 30 June 2021 as against Rs 393.49 crore as on 31 March 2021 and Rs 401.03 crore as on 30 June 2020. The ratio of gross NPAs to gross advances stood at 4.88% as on 30 June 2021 as against 2.68% as on 31 March 2021 and 3.51% as on 30 June 2020. The ratio of net NPAs to net advances stood at 3.21% as on 30 June 2021 as against 1.17% as on 31 March 2021 and 1.74% as on 30 June 2020.
The bank's provisions and contingencies jumped 70.79% to Rs 98.26 crore in Q1 June 2021 as against Rs 57.53 crore in Q1 June 2021. Provision coverage ratio of the bank was at 70.20% as on 30 June 2021 as against 84.89% in 31 March 2021 and 81.73% in 30 June 2020.
The operating profit of CSB Bank stood at Rs 179.78 crore from Rs 129.09 crore for the same period last FY, recording a Y-o-Y (yearon-year) growth of 39%. Net Interest Income (NII) earned for the first quarter was at Rs 267.75 crore with a Y-o-Y increase of 45% over Rs 185.26 crore for Q1 FY21. Non-Interest Income of Rs 76.28 crore as against Rs 74.28 crore for the same period last year i.e., up by 3% Y-o-Y. Non-interest income excluding treasury profit has grown by 84%.
Total deposits grew by 14% YoY and CASA ratio stood at 33.09% as on 30 June 2021 as against 29.23% as on 30 June 2020 and 32.19% as on 31 March 2021. Advances (net) grew by 2588.55 crore to Rs 13817.17 crore YoY, registering a growth of 23%.
Capital Adequacy Ratio improved from 21.37% as on 31 March 2021 to 21.63% as on 30 June 2021. Leverage ratio stood at 8.37% as on 30 June 2021. Liquidity Coverage Ratio was at 171%, well above the RBI requirement.
CSB Bank has a strong base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra. It offers a wide range of products and services to overall customer base of 1.6 million, with particular focus on SME, retail, and NRI customers.
Shares of CSB Bank dropped 4.18% to Rs 321.05 on BSE. The scrip hovered in the range of Rs 280.45 to Rs 345.50 so far.
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