CSB Bank has appointed Bhama Krishnamurthy (DIN: 02196839), Non-Executive Independent Director, as the Part-Time Chairperson of the Bank. The tenure of the present Part-Time Chairman of the Bank, Madhavan Aravamuthan, shall end at the close of office hours on 28 June 2022, as per the terms of approval by RBI, but will continue as a Non-Executive Independent Director.

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CSB Bank announced that CRISIL Ratings has reaffirmed its rating of 'CRISIL A1+' for Certificate of Deposits programme and Short-term Fixed Deposit programme of the Bank. CRISIL Ratings also reaffirmed its rating of 'CRISIL A/Stable' for the proposed Tier II, Basel III compliant bonds issue Programme of the Bank.

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The ratings agency has also reaffirmed its rating on the certificate of deposits programme and short-term fixed deposit programme of the bank at 'CRISIL A1+'.

The ratings reflect the current healthy capitalisation levels along with commitment of support from Fairfax, in case of exigency. The rating also factors in the stable deposit profile and experienced management team. These strengths are partially offset by the modest, albeit improving, earnings profile, lack of track record in the new non-gold loan book and modest scale of operations.

The 'stable' outlook reflects CRISIL Ratings belief that CSB Bank's capitalisation will remain adequate to meet its business growth and manage its asset-quality related risk.

CSB Bank is an old private sector bank with a history of over 101 years and operating out of 603 branches. The business is concentrated in Kerala (approximately 50% branches) with remaining spread mainly across Tamil Nadu, Karnataka, and Maharashtra.

CSB Bank reported a net profit of Rs 130.67 crore in Q4 FY22 as against a net profit of Rs 42.89 crore in Q4 FY21. Total income rose by 4% YoY to Rs 583.17 crore in Q4 FY22.

The scrip shed 0.16% to end at Rs 185 on the BSE.

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Net Interest Income (NII) during the quarter increased by 10.20% to Rs 303.83 crore from Rs 275.70 crore recorded in the same period last year. Total income rose by 4% YoY to Rs 583.17 crore in Q4 FY22.

The bank reported an operating profit of Rs 142.05 crore in Q4 FY22, up 76.72% YoY.

The private lender wrote back provisions amounting to Rs 34.10 crore in Q4 FY22. The bank had made a provision of Rs 22.36 crore in Q4 FY21.

Profit before tax in Q4 FY22 stood at Rs 176.15 crore, which is significantly higher as compared with Rs 58.02 crore in Q4 FY21.

Gross NPA decreased to Rs 289.51 crore as on 31 March 2022 from Rs 393.49 crore as on 31 March 2021.

The GNPA percentage improved by to 1.81% as on 31 March 2022 from 2.68% as on 31 March 2021. Net NPA percentage decreased to 0.68% as on 31 March 2022 from 1.17% as on 31 March 2021.

Provision Coverage Ratio improved to 89.65% as on 31 March 2022 from 84.89% last year as on 31 March 2021.

The capital adequacy ratio is at 25.90%, which is well above the regulatory requirement. The leverage ratio is at 9.12% as on 31 March 2022.

The bank reported a net profit of Rs 458.49 crore in FY22 as against a net profit of Rs 218.40 crore in FY21. Total income increased by 5% YoY to Rs 2,285.11 crore in FY22.

While deposits rose by 5.48% YoY to Rs 20,188.30 crore, net advances increased by 9.53% YoY to Rs 15,814.68 crore as on 31 March 2022.

Pralay Mondal, managing director & CEO (Interim) said: “The asset quality concerns which creeped up due to the reversal of gold portfolio LTV regime & the Covid related economic slowdown could be managed well and the year ended with negative credit costs. The key asset quality ratios viz GNPA, NNPA, and PCR have improved over the last year. Bank is continuing with the accelerated provisioning policy.

Though the Covid situation has altered for the better, considering the uncertainties, we have not reversed the covid-specific provisions. The better management of costs and yields helped in sustaining an improved NIM & RoA. Though our treasury profits were lower compared to last year due to the adverse market conditions, other income streams like bancassurance, fees etc. could bridge the gap to a great extent on the non-interest income front.

Now coming to topline, in net advances we could register a growth of 10% YoY with gold loan growing at 7% and non-gold loan portfolio at 11%. The liabilities were raised duly weighing the requirement and cost considerations with average CASA surging at 22% YoY.

Gold loans, SME and wholesale credit will be the key growth drivers for FY23 while we will be sprucing up our digital banking capabilities and expanding our reach to new geographies.”

CSB Bank is one of the oldest private sector banks in India. It has a strong base in Kerala along with a significant presence in Tamil Nadu, Maharashtra, Karnataka, and Andhra Pradesh. The bank offers a wide range of products and services to our overall customer base of 2.1 million, with a particular focus on SME, retail, and NRI customers. It had 603 branches and 465 ATMs/CRMs spread across the country.

The scrip jumped 9.79% to end at Rs 227.60 on the BSE on Friday.

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