CSB Bank Reports Decline in Net Profit amidst Rising Bad Loans

CSB Bank reported a 14% decrease in net profit to Rs 113 crore for the June quarter due to an increase in bad loans. Despite higher income, net NPAs rose to 0.68%, leading to a rise in provisions and contingencies.

CSB Bank on Monday reported a 14 per cent drop in net profit for the June quarter, totaling Rs 113 crore, as bad loans increased.

In the same period last year, the private sector lender earned Rs 132 crore in net profit. Nevertheless, total income surged to Rs 1,004 crore from Rs 803 crore a year earlier, the bank informed in a regulatory filing.

Interest income also climbed, reaching Rs 832 crore from Rs 683 crore in the prior year. However, the bank's asset quality deteriorated as Gross Non-Performing Assets (NPAs) increased to 1.69 per cent of gross advances as of June 30, 2024, up from 1.27 per cent at the end of the first quarter of the previous fiscal year. Net NPAs also went up, hitting 0.68 per cent from 0.32 per cent in the same period last year, leading to a spike in provisions and contingencies to Rs 20 crore from Rs 5 crore. Notably, the bank's capital adequacy ratio improved to 23.61 per cent, down from 25.99 per cent on June 30, 2023.