CSB Bank (CSBBANK) Q2 2026 earnings summary

Executive summary

• Q2 FY26 delivered strong all-round performance with 27% YoY balance sheet growth and significant YoY and QoQ growth in both top and bottom lines, including a profit after tax of ₹160 crore, up 16% YoY.

• Technology transformation post-CBS migration is nearly complete, enabling the next phase of digital and operational enhancements.

• Strategic focus on building a robust, diversified, and sustainable business model, with gold loans, wholesale, SME, and retail as key pillars.

• Non-interest income surged 75% YoY, driven by strong fee income growth.

• Unaudited financial results for the quarter and half year ended September 30, 2025, were approved by the Board and reviewed by joint statutory auditors with an unmodified report.

Financial highlights

• Net profit for Q2 FY26 was ₹160 crore (₹16,033 lakhs), up 16% YoY and 35% QoQ.

• Net interest income for Q2 FY26 was ₹424 crore, up 15% YoY; total income reached ₹1,458 crore, a 37% YoY increase.

• Operating profit grew 39% YoY and 27% QoQ to ₹279 crore.

• Cost-to-income ratio at 63.86%-64.66%, slightly lower than previous quarters.

• Earnings per share for Q2 FY26 stood at ₹36.67 (basic and diluted ₹9.24).

Outlook and guidance

• NIM expected to remain in the 3.7%-3.9% range for the rest of the year.

• Cost-to-income ratio to stay between 60%-65% for another year, then decline sharply from FY 2027.

• Asset growth of 25%-30% targeted through 2030, subject to deposit franchise strength and liquidity.

• Credit cost guidance maintained at 40-50 bps annually.

• Continued investments in digital infrastructure and product diversification, with a focus on scaling to a mid-sized, new-age bank with national presence by 2030.