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CSB Bank Q4 Results: Profit Rises 16% YoY on Strong Loan Growth
By NextMinuteNews Team
Kochi, May 28, 2024 – Private sector lender CSB Bank, backed by Canadian billionaire Prem Watsa’s Fairfax Financial Holdings, reported a 16% year-on-year (YoY) rise in net profit to Rs 160 crore for Q4 FY24, up from Rs 138 crore in the same quarter last year. The growth was driven by higher core income, lower provisions, and improved asset quality.
Key Financial Highlights
- Net Interest Income (NII): Increased 12% YoY to Rs 350 crore (vs. Rs 313 crore in Q4 FY23).
- Net Interest Margin (NIM): Improved to 5.2% (from 4.9% YoY).
- Gross NPA (GNPA): Declined to 1.47% (vs. 1.79% YoY).
- Provisions: Dropped 8% to Rs 55 crore due to better recoveries.
What Drove CSB Bank’s Profit Growth?
- Strong Loan Growth – Gross advances rose 15% YoY, led by retail, SME, and gold loans.
- Gold Loan Dominance – Contributed 30% of the loan book, remaining a key revenue driver.
- Cost Efficiency – Operating expenses grew only 7%, aiding profitability.
- Lower Provisions – Reduced NPAs and improved recoveries boosted bottom line.
Management Commentary
Pralay Mondal, MD & CEO, said:
“Our focus on retail, SME banking, and prudent risk management has paid off. We’ll sustain growth through digital innovation and customer-centric strategies.”
Fairfax India Holdings (49.7% stakeholder) continues to support governance and expansion plans.
Challenges & Future Outlook
Key Risks:
- Rising competition from larger private banks.
- Regulatory changes impacting gold loans.
- Macroeconomic pressures affecting credit demand.
Analyst View:
“CSB Bank’s niche in gold/SME lending gives it an edge. Stable asset quality can drive further profit growth,” said Rahul Kapoor, ICRA.
Growth Plans:
- Expand branch network to 750 by FY25 (currently 630).
- Boost digital banking for wider customer reach.
- Diversify loan portfolio beyond gold loans.
Market Reaction<a href=”https://nextminutenews.online/?s=
CSB Bank”>
CSB Bank’s shares rose 3% post-earnings, with a 22% yearly gain**, outperforming peers.
Conclusion
With strong Fairfax backing and a clear growth strategy, CSB Bank is well-positioned to benefit from India’s rising credit demand. Investors will watch its digital push and asset quality closely.
Stay updated with NextMinuteNews for more banking insights.
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