CSB Bank’s net profit for the quarter ended March was up 5.8% on year to Rs 202 crore, as net interest income surged and provisions fell.

Net interest income increased 25% on year to Rs 464 crore in the reporting quarter, with other income down around 20% on year to Rs 306 crore. The net interest margin for Jan-Mar stood at 3.83% as against 3.86% a quarter ago.

The gross advances were up 27% on year to Rs 40,359 crore, with the share of gold loan book rising to 53% in FY26 from 44% in FY25. The share of the wholesale book to gross advances also increased to 25% from 23% a year ago. Overall disbursements for the reporting quarter were up 57% on year to Rs 18,864 crore. Cost of funds fell to 6.42% from 6.46% a quarter ago. The gold loan book was up 53% on year to Rs 21,567 crore, as on March 31. The number of accounts declined to 4.16 lakh from 4.48 lakh a year back. The tonnage too declined by 4% on year.

Total deposits grew 20.03% on year to Rs 44,246 as on March 31. Of which term deposits stood at Rs 35,414 crore and current account and savings account deposits stood at Rs 8,832 crore by the end of March. CASA ratio stood at 19.96% as on March 31. Cost of deposits moderated slightly to 6.33% from 6.35% a quarter ago.

Provisions and contingencies for Jan-Mar fell nearly 62% on year to Rs 23 crore. The provision coverage ratio stood at 86.33% as on March 31. The credit cost fell sharply to 0.18% from 0.69% a quarter ago. The asset quality too improved sequentially. Gross non-performing asset ratio (NPA) ratio stood at 1.66% as on March 31, as compared to 1.96% a quarter back. Net NPA ratio improved to 0.40% as on March 31 from 0.67% a quarter ago. Liquidity coverage ratio stood at 109% as on March 31.

Capital adequacy ratio stood at 20.66%, with tier-I capital ratio at 18.93% and tier-II capital ratio at 1.73%. On Monday, the shares of CSB Bank closed 2.62% at Rs 392 on NSE.