CSB Bank shares jump over 12 pc on encouraging Q1 earnings

Shares of CSB Bank on Wednesday zoomed over 12 per cent after the company reported more than two-fold increase in its June quarter net profit.

Shares of CSB Bank on Wednesday zoomed over 12 per cent after the company reported more than two-fold increase in its June quarter net profit. The bank's stock jumped 12.43 per cent to close at Rs 223.85 on the BSE. During the day, it rose sharply by 14.43 per cent to Rs 227.85.

On the NSE, it closed 11.56 per cent higher at Rs 222.35. Kerala-based CSB Bank on Wednesday reported more than two-fold increase in its June quarter net profit to Rs 53.6 crore on a healthy rise in core interest and treasury incomes.

The bank reported profit growth despite a steep increase in overall provisions to Rs 57.5 crore as against Rs 10.1 crore in the year-ago period. Its chief executive and managing director CVR Rajendran said a bulk of the extra provisions was due to the COVID-19 pandemic, but underlined that it does not worry a lot about asset quality going ahead.

The gross non-performing assets ratio improved to 3.51 per cent as of June as against 4.71 per cent in the year-ago period and the advances overdue for 31-90 days were only Rs 22 crore in an over Rs 11,000-crore book..