The south-based CSB Bank posted an 88% jump in the December quarter with a net profit of ₹53 crores. They also witnessed a jump in provisions for bad loans, on Tuesday, as they were added by a smaller base.
This Kerala-based private sector lender’s core net interest income grew by 61.8% to ₹155.2 crores for the quarter. These profits have helped in non-interest income. It has led to the amount doubling to ₹116.6 crores. Its advances grew by 22 percent on the back of a 61 percent rise in gold loans. The net interest margin was expanded to 5.17%.
The bank income is said to have been lower in the previous year as a result of the ₹75 crores that impacted the migration to a new kind of taxation by the time December ended, the bank’s gross non-performing assets ratio stood at 1.77% as opposed to 3.04% three months ago. It is due to the Supreme Court’s order, the GNPAs would have been 3.42%.
C V R Rajendran, who is the managing director and chief executive of the bank informed reporters that even though it has not had to deal with any kind of slippage during the reporting quarter, it has set aside some amount of money for all kinds of prospective losses that may be there. The excess provisions are now standing at ₹277 crores. The overall provisions could shoot up to ₹111 crores as opposed to ₹27.61 crores in the year-ago period.
The bank is said to continue to be cautious and conservative in its strategy going forward, according to Rajendran. He also added that the bank will be more open to lending money to small businesses as the economy recovers. The bank’s overall capital adequacy is at over 21% according to Rajendran. He also said that the bank will not be looking to raise any funds for the upcoming two years.
CSB Bank’s current shares were trading 2.60% up at ₹237.20 on the BSE as opposed to 1.75% gains on the benchmark.
