08 May , 2021 By : Debdeep Gupta
Kerala-based CSB Bank on Saturday posted a net profit of Rs 42.89 crore for the March 2021 quarter as against a loss of Rs 59.68 crore in the year-ago period, largely helped by a write-back of standard asset provisioning and improvement in core income.
The bank’s profit for full financial year 2020-21 zoomed to Rs 218 crore, from Rs 12 crore a year ago.
For the reporting quarter, its core net interest income grew 75 percent to Rs 275 crore on a 27 percent growth in advances and a huge expansion in net interest margin to 5.42 percent as against 3.73 percent.
The non-interest income came at Rs 112 crore, up from Rs 86.57 crore in the corresponding period last year.
It is on the back of improved treasury profits, processing fee, commission on insurance policies sale, and income booked by selling priority sector loans.
The bank’s Managing Director and Chief Executive Officer C V R Rajendran told reporters that it is better placed for growth in the new financial year and looks at gold loans, two-wheeler loans and small businesses as its key areas for growth.
It will expand its branch network by 200 during the new fiscal year, and looking at decreasing its concentration in three districts of its home state to expand more in northern Kerala, he said.
The bank had a Rs 37-crore write-back under the standard asset provisioning head as against setting aside Rs 4 crore in the year-ago period, while the overall provisions decreased to Rs 71 crore from the Rs 84 crore a year ago.
"We have made enough provisions for stressed assets by way of accelerated NPA (non-performing assets) provisioning and standard asset provisioning,” he said.
The gross non-performing assets ratio improved to 2.68 percent as of March 31, 2021, as against 2.68 percent in the year-ago period.
The provision coverage ratio improved to 84.89 percent from 80.02 percent in the year ago period, and the lender is holding a standard asset provision of Rs 168.21 crore.
The overall capital adequacy of the bank stood at 21.37 percent as of March 31.
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