CSB Bank net soars 72% on lower provisioning

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October 26, 2021 2:15 AM

Provisions were written back for the quarter in review with recoveries and upgrades seen higher than slippages.

The provision coverage is seen at 73.48% as on September 30, 2021, from 70.20% for Q1FY22 and 84.89% in the year-ago period.

CSB Bank on Monday reported a 72% year-on-year jump in its net profit to Rs 118.57 crore for the second quarter due to lower provisioning for bad loans. The Thrissur-based lender had reported a net profit of Rs 68.90 crore in the year-ago period and a net profit of Rs 61 crore in the first quarter of the current fiscal.

Provisions were written back for the quarter in review with recoveries and upgrades seen higher than slippages.

The asset quality improved, with gross non-performing assets (NPA) as a percentage of gross advances being reported at 4.11%, compared with 4.88% in the preceding quarter and 3.04% in the year -ago period. Net NPA as a percentage of gross advances stood at 2.63%, against 3.21% in the preceding quarter and 1.30% in the second quarter of FY21.

The provision coverage is seen at 73.48% as on September 30, 2021, from 70.20% for Q1FY22 and 84.89% in the year-ago period.

CVR Rajendran, managing director & CEO, said with the opening up of the economy, positive trends are visible on the asset quality front. “Out of the gross NPA of Rs 586.83 crore, Rs 287.52 crore is gold NPA where recovery is almost assured.”

“The uptick in demand is expected to be strengthened by the upcoming festive season, resilient agri sector, increased government capex and exports. Visible growth is also happening in gold loan portfolio. In terms of growth, we look forward for better traction and results in the third quarter. With both the product and process improvements being implemented/proposed, we intend to capture a better share of the retail segment and grow both retail liabilities and assets. So, we look forward to improve our performance in both the top line and bottom line parameters,” Rajendran said.

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