CSB Bank Reports Modest Profit Growth Amid Asset Quality Concerns

CSB Bank posted a modest 5% increase in net profit for the June quarter, achieving Rs 119 crore compared to Rs 113 crore same time last year. Despite the growth, concerns loom due to weakened asset quality.

Total income for the private sector lender rose significantly to Rs 1,286 crore from Rs 1,004 crore. In alignment, interest income saw an uptick, reaching Rs 1,041 crore, making a notable jump from Rs 832 crore.

The bank's asset quality faced challenges as Gross Non-Performing Assets (NPAs) rose to 1.84% from 1.69% a year prior, with Net NPAs steady at 0.66%. This led to increased provisions and contingencies, now at Rs 61 crore from Rs 20 crore, affecting the capital adequacy ratio, which slipped from 23.61% to 21.71%.

(With inputs from agencies.)