CSB Bank Limited held its Q3 FY2026 Earnings Conference Call on January 28, 2026, with management including MD & CEO Mr. Pralay Mondal, Executive Director Mr. B.K. Divakara, and CFO Mr. Satish Gundewar. The bank reported a net profit of ₹153 crores, which was flat year-on-year, while operating profit grew by 32% to ₹292 crores. Net Interest Income (NII) increased by 21% year-on-year to ₹453 crores. Other income grew by 26%, contributing 19% to total income. The Cost-to-Income ratio improved to around 60%. Net Interest Margin (NIM) for the quarter was the highest for the fiscal year at 3.86%, supported by a marginal reduction in funding costs. Return on Assets (ROA) stood at 1.22%. On the liability front, deposits grew robustly by 21% year-on-year, outpacing industry growth. CASA grew by 3% year-on-year, with a CASA ratio of 20.5%. Liquidity coverage ratio (LCR) averaged 114% and Net Stable Funding Ratio (NSFR) was 118%. Advances grew by 29% year-on-year, double the systemic growth rate. Yield on advances was 10.82%. Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) were reported at 1.96% and 0.67% respectively, which are within guidance but slightly elevated for the quarter. Provision Coverage Ratio (PCR) without write-offs stood at 66.32%. The bank maintains a provisioning buffer of ₹193 crores above regulatory requirements. Capital Adequacy Ratio (CRAR) was 19.41%, with a Tier 1 ratio of 17.66% as of December 31, 2025. Book value per share was ₹269, and Earnings Per Share (EPS) for the quarter was ₹34.91, with a Return on Equity (ROE) of 13.38%. Both gold loans and wholesale banking verticals contributed significantly to advance growth, with over 40% growth. The bank has reduced its exposure to the unsecured book and is exercising caution in the SME portfolio, prioritizing quality and pricing. The loan against security repledger business, primarily gold-collateralized, has been allowed to degrow as per regulatory guidance. The management expressed confidence in improving GNPA, NNPA, and credit cost over the next one to two quarters, expecting significant upgrades and betterment in NPA ratios in Q4 and Q1. They aim for an ROA of around 1.5% and ROE of 15% by FY27.
