CSB Bank Q1 Results: Stock falls 7% after asset quality deteriorates, provisions rise

Shares of CSB Bank Ltd., the Thrissur-based private lender, fell as much as 7% on Wednesday, July 22, in response to its June quarter results, which saw some pressure on the lender's asset quality.

CSB Bank's gross NPA stood at 1.75% from 1.66% in the March quarter, while Net NPA stood at 0.39% from 0.4% in March. Provisions for the quarter have also increased on a sequential basis.

In absolute terms, CSB Bank's gross NPA stood at ₹715.42 crore from ₹669.78 crore in the previous quarter, while Net NPAs stood at ₹157.68 crore from ₹158.23 crore last year.

Provisions at the end of the June quarter stood at ₹49 crore, more than double the ₹23 crore figure reported in June, but lower than the ₹60.7 crore figure it had reported back in the June quarter last year.

For the June quarter, CSB Bank's Net Interest Income, or core income, increased by 26% from last year to ₹478.4 crore from ₹379.5 crore.

Net profit for the period also increased by 26.5% to ₹150 crore from ₹118.6 crore last year. CSB Bank's operating profit grew by 14% from the same quarter last year to ₹251 crore from ₹220 crore.

In its quarterly business update disclosed earlier, CSB Bank's advances increased by 24% from last year to ₹40,309 crore, while its deposits grew by 26% on a year-on-year basis to ₹45,415 crore.

Gold Loans increased by 47% from last year to ₹21,906 crore. Gold Loans now form 54% of the overall loan book, compared to 47% during the same quarter last year.

Shares of CSB Bank are trading 6.7% lower after the results announcement on Wednesday at ₹345.2. The stock is nearing its 52-week low level of ₹317.35 and is down 40% from its 52-week high of ₹574.

This is breaking news and will be updated with more details.