CSB Bank Soars 7% on Strong Q1 Deposit and Advances Growth Update

CSB Bank share price surged by over 7% to ₹402 per share following the lender's business update on July 2, which reported robust growth in total deposits and gross advances for the quarter ending in June (Q1FY25).

Private sector lender CSB Bank released its business update for the quarter ending June 30, 2024, on Monday (July 1). The update indicated strong growth in both total deposits and gross advances compared to the previous quarter and the same period last year.

In the past month, CSB Bank share price have surged over 17%, significantly outperforming the benchmark Nifty 50, which saw a 7% rise during the same period.

CSB Bank share price are still below the previous 52-week high of ₹421 that it had touched on January 1, 2024. 

CSB Bank's business update reports that total deposits increased by 0.6% quarter-on-quarter (QoQ) to ₹29,920 crore, and surged 22.2% year-on-year (YoY) from ₹24,476 crore. The bank's gross advances grew by 17.7% YoY to ₹25,099 crore in Q1FY25 and increased by 2.15% QoQ.

For the quarter ending in March, CSB Bank reported a 3.1% year-on-year (YoY) decline in net profit to ₹151.5 crore, down from ₹156.4 crore in the same period the previous year. However, the bank's net interest income rose by 11% YoY to ₹387 crore in Q4FY24, up from ₹349 crore in the year-ago period.

Gross non-performing assets (GNPAs) were at 1.47% in the fourth quarter, up from 1.22% in the third quarter of FY24. Net NPAs rose to 0.51% from 0.31% quarter-on-quarter (QoQ).

Net interest income (NII), which represents the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased by 11%, reaching ₹387 crore compared to ₹349 crore in Q4 of FY23.

Gross non-performing assets (GNPAs) were at 1.47% in the fourth quarter, up from 1.22% in the third quarter of FY24. Net NPAs stood at 0.51%, compared to 0.31% quarter-on-quarter (QoQ). In monetary terms, gross NPAs amounted to ₹361 crore, up from ₹278.7 crore in the December quarter (Q3). Net NPAs in Q4 were ₹124.9 crore, a decrease from ₹702.3 crore in Q3.