CSB Bank (CSBBANK) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 FY25 was INR 113 crore, up 14% year-over-year, with a provision buffer of INR 182 crore above regulatory requirements.

• Balance sheet grew 25% year-over-year to ₹36,583 Cr, and total business rose 20% to ₹55,019 Cr.

• Net interest margin (NIM) stood at 4.36%, impacted by higher funding costs and regulatory changes on penal charges.

• Return on assets (ROA) was 1.27%, and return on equity (ROE) was 12.69%.

• Deposit growth was 22% year-over-year, outpacing industry growth of 11%.

Financial highlights

• Gross NPA ratio at 1.69%, net NPA at 0.68%, and provision coverage ratio at 82.53%.

• Net interest income for Q1 FY25 was ₹362 Cr, down 1% year-over-year and 6% sequentially.

• Non-interest income surged 43% year-over-year to ₹172 Cr.

• Book value per share at INR 217; EPS at INR 26.2.

• Cost-to-income ratio increased to 67.69% in Q1 FY25 from 64.09% in Q1 FY24.

Outlook and guidance

• NIM guidance for FY25 remains at 4.5%-4.8% despite Q1 compression.

• ROA guidance maintained at 1.5%-1.8% for the full year.

• Management expects NIM and ROA to improve from Q2 onwards as one-off impacts subside.

• Credit cost guidance remains at 20-30 bps for the year.

• Focus on pan-India expansion, digital transformation, and strengthening the liability franchise.