CSB Bank, a private sector lender, reported a net profit of Rs 113 crore for the first quarter of fiscal year 2024-25, marking a 14 percent decline from Rs 132 crore in the same period last year. The decrease in profit is attributed to a deterioration in asset quality.
Total income for the bank rose to Rs 1,004 crore from Rs 803 crore a year earlier, with interest income increasing to Rs 832 crore from Rs 683 crore.
The bank’s asset quality declined, with gross non-performing assets (GNPAs) rising to 1.69 percent of gross advances, up from 1.27 percent at the end of the first quarter of the previous fiscal year. Net NPAs also increased to 0.68 percent of advances, compared to 0.32 percent last year.
Chief Financial Officer Satish Gundewar stated during an analyst call that GNPAs have likely peaked this fiscal year, and the bank anticipates better performance in Q2FY25.
The bank’s net interest margin stood at 4.36 percent, down from 5.4 percent a year ago. The capital adequacy ratio for the quarter was 23.61 percent.
The bank’s shares closed at Rs 344.60 on the BSE, reflecting a 3.85 percent drop.
