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.
neutral
medium
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
55%Questions answered1Evaded / deflected11Questions audited
Partial answer
High priority
Why retail and BNC loan growth down? Details on slippage of ~200 cr.
Asked by Parag Jeriala, VTO Capital
Management gave qualitative color but did not provide a precise split of slippage between retail and SME.
no exact breakdown of slippage by segmentno specific number of accounts initially
Read the exchange
Question
So currently I have two questions. one with respect to you know material investment on the slide number 17 uh retail and BNC is been down uh considerably... secondly of the slippage of around 200 cr uh can you give us some more granular detail with respect to you know how many accounts are there uh what led to this technical usage age
Management (likely CEO/MD)
So I will uh respond to the first question first which is uh business mix and uh growth in gold... Coming to the second question on uh slippage uh yes around 197 crores is the slippage out of that a large part is on the SMA side or retail is starting to come you know it has become flat...
Partial answer
High priority
How many accounts in total slippage? Are they in textile/footwear?
Asked by Parag Jeriala, VTO Capital
Management gave a range of accounts but did not confirm if they are in tariff-affected sectors.
did not confirm sector exposuredownplayed number of accounts
Read the exchange
Question
these are how many accounts you said that you know maybe four to seven account will be able to upgrade but total slippages is around how many accounts and is it fair to say that large part of these accounts are mainly to do with tariffs or they are they must be in textile footwear or such kind of a uh industry.
Management (likely CEO/MD)
So uh par I mean number of accounts sometimes is irrelevant... relevant number will be around uh 10 11 accounts okay in theme site retail I'm not talking about retail is a portfolio level but I'm talking about theme...
Partial answer
Medium priority
How do you manage bumps in the journey? Risk processes and SME stress?
Asked by Nat Shankar, DSP Mutual Fund
Management acknowledged bumps but did not elaborate on risk management systems or specific stress pockets.
did not detail specific risk processesreframed to reassure about guidance
Read the exchange
Question
how do we manage this bumps? How do we you know are the systems robust enough to you know to weather this entire journey? ... Could we just take two parts of that question? One, the overall context of memes what you're observing in general which pockets in general you're seeing some bit of stress coming out and secondly within your cohorts how are you placed within that?
Management (likely CEO/MD)
So uh you know just to contextualize um when you're talking about bombs where two bombs one is NE going to 3.51 and one is uh um sorry this gross NPA GNPA going to 1.97 okay now both of these are well within the range...
Answered
High priority
When will deposit growth fall through? What will it take?
Asked by Nat Shankar, DSP Mutual Fund
Management provided a clear timeline and levers for deposit growth.
Read the exchange
Question
you talked about system stabilization and stuff like that. Glad that is going well. Um, when would you actually start seeing that? um what would it take for that to actually fall through in place uh the deposit growth you're talking about?
Management (likely CEO/MD)
Yes. So we are looking at three levers on deposit growth. Okay. One is a long haul which is creating retail products creating CASA creating retail customer acquisition... This will take anything between 12 to 18 months.
Partial answer
Medium priority
Why did other opex decline 22% QoQ? Can CTI stay at 60%?
Asked by Akshhat Agraal, Smith Institutional Research
Management explained the decline as tactical PSL timing but did not confirm if CTI can stay at 60%.
attributed decline to one-off PSL timingno headcount reduction confirmation
Read the exchange
Question
In terms of opex, other opex declined 22% Q. Is it because of technology investment coming out of the base and was there any headcount reduction and uh CTI is at 60% now? So do we think we can maintain this level going forward?
Management (likely CEO/MD)
So uh what had happened this quarter is of course uh as a bank when deposit costs are going up and ills are uh falling one has to be conscious of cost management... we put special cost management practices... What specifically happened this quarter is um in fact we did a detailed analysis of the PSL income...
Answered
Medium priority
Will tech cost come off in next 1-2 quarters?
Asked by Akshhat Agraal, Smith Institutional Research
Management clearly stated tech cost will not come off significantly in near term and gave a range.
Read the exchange
Question
so is it is it not coming of now that incremental uh costs because the tech stacking uh stack cost for the whole uh whole investments for the technology I mean shouldn't it come off at some point in next one or two quarters
Management (likely CEO/MD)
no it doesn't the accounting doesn't work like that unfortunately so uh the take cost eventually will probably be slightly lesser than what it is today... the better way of looking at it is that 8 to 10% of our overall opex will be uh will be technology maybe it will go from go down by one or percentage...
Partial answer
Medium priority
Why did yield on advances decline despite higher gold proportion?
Asked by Akshhat Agraal, Smith Institutional Research
Management explained the decline but did not directly address whether gold yield offset the impact.
did not quantify offset from goldattributed to broader rate environment
Read the exchange
Question
So yield on advances declined this quarter. So it is coming from higher wholesale mix at lower yield MCL revision and some reporate impact and wouldn't higher gold proportion with incremental higher yield at 11.83 versus 11.77% kind of offset most impact on yield on advances.
Management (likely CEO/MD)
So if you look at it uh because of the report rate decrease almost 125 bases happens in the last one a little more than a year. So all of that has flown through me business right... our almost 60% and above is fixed rate loans uh including gold loans.
Partial answer
Low priority
Is incremental borrowing cost still benefiting or already in?
Asked by Akshhat Agraal, Smith Institutional Research
Management gave a vague answer without quantifying the benefit or providing a clear outlook.
no clear forward guidancementioned hedging cost offset
Read the exchange
Question
So is incremental borrowing cost uh versus the book borrowing cost is it still uh you know you're seeing benefit there going forward or is it already in most of it?
Management (likely CEO/MD)
See borrowing cost uh it is linked to so far so far has not really come down that much unfortunately hopefully it will come down over a period of time but definitely borrowing cost has come down marginally...
Partial answer
High priority
Is incremental slippage from new accounts? Coverage on SME?
Asked by Akshhat Agraal, Smith Institutional Research
Management gave collateral coverage but did not directly answer whether more slippage is expected.
did not confirm if slippage is from new accountsavoided forward guidance on further slippage
Read the exchange
Question
is this incremental flow from any new accounts I mean is it I mean is it all in this quarter and we are just expecting recoveries or is there we can expect some more accounts to slip on theme and what kind of coverage do you have?
Management (likely CEO/MD)
So if you're talking about theme, we are very well collateralized. Um around almost 80% and above is collateralized... we don't even have a SMA account in corporate banking for example.
Partial answer
Medium priority
Will cost of funds be flattish? Considering raising retail TD rates?
Asked by Parth Mutka, 361 Capital
Management discussed deposit mix but avoided a clear yes/no on raising retail rates.
did not directly answer about raising retail TD ratesgave conditional outlook
Read the exchange
Question
should we expect the cost of funds to be sort of flattish uh from here on that's my question one and second is some of the peers have raised uh the term deposit rates that the retail term deposit rates uh uh so are we also considering doing anything like that.
Management (likely CEO/MD)
So on your uh uh deposit uh this thing mix as you rightly said that our B deposit percentage is slightly higher... the qu answer is that we didn't lock in long-term deposits anywhere... if the liquidity situation don't change I don't see how cost of funds will change drastically from here...
Evasive
High priority
Confident of maintaining 15% ROE guidance? Will credit cost normalize?
Asked by Ishmo, Essos IC Research
Management gave vague assurances without reaffirming the 15% ROE target or providing a credit cost range.
no commitment on ROEno specific credit cost guidancedeferred to forward-looking statement disclaimer
Read the exchange
Question
So my question was related to our return on equity. I think in the past we have always talked about that 15% is our luxura... So are we confident of maintaining those 15% guidelines? ... We see the credit cost also falling down as we go into Q4 and Q& are we expecting the credit cost normalize from it.
Management (likely CEO/MD)
Yeah, we'll try to touch the luxandra but let's see but we'll definitely be better than where we are right now... Our endeavor is to do that. I think uh uh we should do a lot better than where we are today.
Partial answer
High priority
Will Q3 slippages continue in Q4? Advances growth and ROA/ROE targets for FY27?
Asked by Anushia Rahija, Dalal in Rocha
Management gave growth guidance but avoided specific ROA/ROE numbers for FY27 and gave qualitative assurance on slippage.
did not give specific ROA/ROE targets for FY27qualitative on slippage
Read the exchange
Question
given the fact that uh the macro uh global macro is still uncertain how are we confident that uh this Q3 slippages uh you know will not continue in Q4 and going forward and secondly um uh what is the broader call in terms of advances growth that you anticipating in FI27 and any internal target for ROA roe for FI27?
Management (likely CEO/MD)
So on the growth we as I said before already we will be growing asset book somewhere 25% and above okay... coming to the slipage and quality of portfolio question... we know exactly where our customers stand... we have full control on that.