Robust growth in advances (29%) and deposits (25%)
FinTech BizNews Service
Mumbai, November 5, 2025: The Board of Directors of CSB Bank took on record the financial results for the quarter (Q2 FY 2026) and half year ended 30.09.2025 (H1 FY 2026) which were subject to limited review by the Statutory Auditors in their meeting held on 05.11.2025
Highlights
a) Total Deposits grew by 25% YoY from Rs 31,840 crore as on 30.09.2024 to Rs 39,651 crore as on 30.09.2025. The CASA ratio stood at 21% as on 30.09.2025.
b) Advance (Net) grew by 29% YoY from Rs 26,602 crore as on 30.09.2024 to Rs 34,262 crore as on 30.09.2025 supported by a robust growth of 37% in gold loans on YoY basis.
c) Net Interest Income (NII) up by 15% YoY from Rs 367 crore for Q2 FY25 to Rs 424 crore for Q2 FY26 and up 12% QoQ from Rs 379 crore for Q1 FY26
d) Non-Interest Income up by 75% YoY from Rs 199 Crore for Q2 FY25 to Rs 349 Crore for Q2 FY26 and up by 43% QoQ from Rs 245 crore for Q1 FY26
e) Cost Income Ratio is at 64% for Q2 FY26 which is lower than both Q2 FY25 and Q1 FY26.
The Bank continues to make significant investments in people, distribution, systems & processes in the build phase aimed at creating a strong foundation for the scale that we aspire to achieve as part of SBS 2030 vision.
f) Operating Profit up by 39% YoY from Rs 200 crore for Q2 FY25 to Rs 279 crore for Q2 FY26 and up by 27% QoQ from Rs 220 crore for Q1 FY26
g) Profit after Tax (PAT) up by 16% YoY from Rs 138 crore for Q2 FY25 to Rs 160 crore for Q2 FY26 and up by 35% QoQ from Rs 119 crore for Q1 FY26. We continue to maintain the accelerated provisioning policy during this quarter as well. Return on Assets and NIM were at 1.33% and 3.81% respectively during Q2 FY26.
h) Robust Capital Structure - Capital Adequacy Ratio is at 20.99%, which is well above the regulatory requirement. CRAR as on 30.09.2024 was 22.74%.
i) Asset Quality & Provisioning – Gross non-performing assets were at 1.81% as on 30.09.2025 as against 1.84% as on 30.06.2025
Net non-performing assets were at 0.52% as on 30.09.2025 as against 0.66% as on 30.06.2025.
Performance Highlights:
(Rs Crore) | Q2 FY26 | Q2 FY25 | YoY (%) | Q1 FY26 | QoQ (%) |
Interest Income | 1,109 | 865 | 28% | 1,041 | 7% |
Interest Expense | 686 | 497 | 38% | 662 | 4% |
Net Interest Income | 424 | 367 | 15% | 379 | 12% |
Other Income | 349 | 199 | 75% | 245 | 43% |
Net Operating Income | 773 | 567 | 36% | 624 | 24% |
Total Opex | 493 | 367 | 35% | 404 | 22% |
Operating Profit | 279 | 200 | 39% | 220 | 27% |
Provisions other than Tax | 64 | 14 | 358% | 61 | 5% |
PBT | 216 | 186 | 16% | 160 | 35% |
Tax | 55 | 48 | 15% | 41 | 35% |
PAT | 160 | 138 | 16% | 119 | 35% |
Deposits | 39,651 | 31,840 | 25% | 35,935 | 10% |
Advances (Net) | 34,262 | 26,602 | 29% | 32,552 | 5% |
CASA | 8,394 | 7,670 | 9% | 8,441 | -1% |
Gold | 16,456 | 12,005 | 37% | 14,928 | 10% |
CASA% | 21% | 24% | -3% | 23% | -2% |
Pralay Mondal, MD & CEO, explains:
"Our performance this quarter demonstrates a steadfast commitment to the SBS 2030 envisioned by the Bank. Despite the ongoing challenges in the broader market, our team's strategic focus on both growth and system stabilization in a calibrated manner has driven improved outcomes as compared to Q1 FY26.
Our total business grew by 27% on a YoY basis underpinned by a deposit growth of 25% and advance growth of 29%. We continued to outpace the industry trends across both parameters this quarter as well. On the bottom line, our operating/net profit grew by 39% and 16% respectively compared to Q2 FY 25 and by 27% and 35% on a QoQ basis. The YoY improvement was largely driven by a 15% growth in NII and 75% growth in other income. NIM and RoA improved by 27 bps and 30 bps respectively as compared to Q1 FY 26. Despite the substantial investments to fuel the growth, our disciplined cost management has helped us to maintain the cost income ratio within the guidance at 63.86% – a tad lower than both Q1 FY 26 & Q2 FY 25. Asset quality improved over Q1 FY 26 and the GNPA and NNPA ratios stood at 1.81% and 0.52% respectively as on 30.09.25. All other profitability, efficiency, liquidity, and capital adequacy ratios continue to be stable and in line with the expectations.
The first phase of the IT transformation is over and almost stable now. With the scale phase slated for FY27, we are diligently laying the groundwork to establish a robust foundation for achieving the targeted growth. Our strategic emphasis is on the granular retail journey, which we anticipate will be a key differentiator in the forthcoming scale phase. With strong liquidity and capital buffers, we are well-positioned to maintain our growth trajectory in the upcoming quarters. We remain fully committed to continuously raising performance standards and fulfilling the expectations of our stakeholders."
