CSB Bank (CSBBANK) Q2 2025 earnings summary

Executive summary

• Net profit for Q2 FY25 reached INR 138 crores (₹13,841 lakhs), up 22% sequentially and 4% year-over-year, with balance sheet size at ₹39,464 crore and total business up 23%.

• Deposits grew 25% YoY to ₹31,840 crore, advances up 20% YoY to ₹26,871 crore, and gold loan portfolio expanded 28% YoY, comprising 44% of advances.

• Branch network expanded to 802 branches and 770 ATMs, with 23 new branches added in H1 and over 90 added YoY.

• Strategic focus on technology transformation, digital expansion, and strengthening gold loan and retail banking segments under the SBS 2030 plan.

• Financial statements prepared in accordance with Indian GAAP, Companies Act, RBI guidelines, and SEBI regulations, with an unqualified review report.

Financial highlights

• Margins sustained at 4.3% for the quarter despite rising cost of funds; ROA at 1.5%, ROE at 14.53%.

• Net interest income rose 7% YoY to ₹367 crore; non-interest income surged 40% to ₹199 crore.

• GNPA at 1.68%, NNPA at 0.69%, PCR at 81.49% (or 115% including PWO); provisioning buffer of INR 183 crores above regulatory requirements.

• Fee income now at 17-18% of total income, with potential to reach 19-20%.

• Cost-to-income ratio increased to 66.13% in H1 FY25 from 57.57% in H1 FY24.

Outlook and guidance

• Loan growth guidance for FY25 is 30-50% above system trend, with similar momentum expected in FY26.

• NIM guidance revised to 4.3-4.5% due to regulatory impact of penal interest; upside expected only if interest rates decline.

• ROA guidance maintained at 1.5-1.8%, with expectation to remain at the lower end of the range.

• Credit cost expected to remain below 0.4%, with GNPA below 2% and NNPA below 1%.

• Major investments in technology and infrastructure are expected to drive future growth and operational efficiency.