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Sustained deposit cost pressure
View Risks →CSB Bank Limited — Q3 FY26
CSB Bank reported a flat PAT of 153 crores YoY for Q3 FY26, despite strong operating profit growth of 32% YoY to 292 crores and NII growth of 21% YoY to 453 crores.
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CSB Bank reported a flat PAT of 153 crores YoY for Q3 FY26, despite strong operating profit growth of 32% YoY to 292 crores and NII growth of 21% YoY to 453 crores. The bank's advances grew 29% YoY and deposits 21% YoY, outperforming industry averages. However, asset quality deteriorated with GNPA at 1.96% and NNPA at 0.67%, driven by slippages of ~197 crores, primarily in the SME segment due to global trade uncertainties. Management expects upgrades and recoveries in Q4 and Q1 FY27, aiming to bring GNPA back below 2%. NIM improved to 3.86% and is expected to stay in the 3.7-3.9% range. Cost-to-income improved to 60% but may rise next quarter due to PSLC timing. The bank is investing in technology and expects cost-to-income to decline from FY28. Key risk: sustained deposit cost pressure and potential further SME stress from tariff impacts.
CSB बैंक का Q3 FY26 में शुद्ध लाभ (PAT) 153 करोड़ रुपये रहा, जो पिछले साल के समान ही है। हालांकि, परिचालन लाभ (operating profit) 32% बढ़कर 292 करोड़ और ब्याज आय (NII) 21% बढ़कर 453 करोड़ रुपये हो गई। बैंक ने कर्ज (advances) 29% और जमा (deposits) 21% बढ़ाए, जो उद्योग के औसत से बेहतर है। लेकिन खराब कर्ज (GNPA) 1.96% और शुद्ध खराब कर्ज (NNPA) 0.67% हो गया, जो मुख्य रूप से छोटे-मध्यम उद्योगों (SME) में वैश्विक व्यापार अनिश्चितता के कारण हुआ। बैंक को उम्मीद है कि अगली तिमाहियों में वसूली से GNPA 2% से नीचे आ जाएगा। ब्याज मार्जिन (NIM) 3.86% रहा, जो 3.7-3.9% के बीच रहने की संभावना है। लागत-आय अनुपात 60% रहा, लेकिन अगली तिमाही में बढ़ सकता है। बैंक तकनीक में निवेश कर रहा है, जिससे FY28 से लागत कम होने की उम्मीद है। मुख्य जोखिम: जमा लागत बढ़ना और SME क्षेत्र में और दबाव।
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Quarter Snapshot
GNPA Ratio
1.96%
+30bps YoY
Gross NPA ratio increased from 1.66% in Q3 FY25 to 1.96%, driven by SME slippages.
NNPA Ratio
0.67%
+12bps YoY
Net NPA ratio rose from 0.55% in Q3 FY25, reflecting higher slippages and lower coverage.
Gold Loan Share
50-51%
Flat YoY
Gold loans constitute about half of advances; management targets reducing to 25-30% by FY30.
Slippages
197 crores
+60% QoQ
Slippages increased sharply from ~123 crores in Q2, largely from SME and retail segments.
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Guidance and risk preview
Management expects GNPA to stay below 2% and improve in Q4/Q1 FY27 through upgrades and recoveries.
System-wide deposit growth lags credit growth, keeping deposit rates high and pressuring NIMs.
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