CSB Bank posted a 16 per cent on-year growth in its Net Interest Income at Rs 1333.85 crore during FY23 as against Rs 1153.30 crore in the corresponding previous financial year. It posted a 19.38 per cent growth in PAT at Rs 547.36 crore for the financial year 2022-23 in comparison to Rs 458.49 crore during FY22. “Even though there was pressure on the cost of funds on account of the increasing interest rate environment, Net Interest Margin improved to an all time high of 5.48 per cent, up by 21 bps in the year following an increase in the credit deposit ratio and transmission of higher interest rates to the advanced customers. Gross NPA and Net NPA ratios further improved to 1.26 per cent and 0.35 per cent as of March 31, 2023, as against 1.81 per cent and 0.68 per cent in the previous year,” said Bhama Krishnamurthy, Chairperson, CSB Bank.
Operating profit of the bank is Rs 707 crore as against Rs 614 crore in the previous financial year, up by 15 per cent on-year. The 19 per cent profit increase during the financial year was backed by a 25 per cent business growth, 31 per cent net loan book growth, and 21 per cent deposit growth. “We were able to grow faster than the average industry growth trends in both deposits and advances. Despite lower treasury and PSLC income contributions, the operating profit recorded a growth of 15%, supported by growth in NII and other income,” the company said.
“Our gross advances and deposits registered handsome gains on a year-on-year basis, backed by contributions from all the business verticals. Our total deposits stood at Rs 24,506 crore with an increase of 21 per cent on-year and CASA book is at Rs 7,886 crore, up by 16 per cent,” said Pralay Mondal, MD & CEO, CSB Bank.
The bank’s retail loans for FY23 was at Rs 2966 crore, up 30 per cent on-year, the SME loans was at Rs 2491 crore, corporate loans at Rs 6332 crore and the treasury investment portfolio was at Rs 6332 crore.
CSB Bank opened 100 new branches during FY23 and closed the financial year with a total of 703 branches and 2.1 million customers. “We opened 100 branches for the third consecutive year in a row, with a 70% increase in the number of branches from 411 to 703 since FY20,” said Pralay Mondal.
Towards ‘SBS 2030’
The Kerala-based bank is working towards becoming a mid-sized bank over the mid-term, by focusing on technology, profitability, asset quality and human strategy, under its SBS 2030 (Sustain, Build, Scale) strategy. “With our SBS 2030 (Sustain, Build, Scale) strategy, we aim at sustaining strong foundations and critical strengths, building the future highway through investments in technology, digital infrastructure, people, leadership, products and processes, and scaling to the next level of growth and excellence,” said Bhama Krishnamurthy.
Further, the bank added that the next two years will see maximum investment in technology and to expansion plans as well. “We will also continue with the geographic expansion plans to add 100 more branches during the current FY. We employed 2,200 people in the last fiscal, an increase of 46 per cent over the previous year. We will be adding a similar number this fiscal. We are building a sales acquisition arm with an eye on increasing new customer acquisition, a base for building our full service franchise ahead,” concluded Pralay Mondal.