CSB Bank Q4 Review - Asset Quality Trends Improve; One-Time Operating Expense Hurt Profit: Dolat Capital
A customer counts Indian one-hundred rupee banknotes in India. (Photographer: Dhiraj Singh/Bloomberg)

CSB Bank Q4 Review - Asset Quality Trends Improve; One-Time Operating Expense Hurt Profit: Dolat Capital

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

CSB Bank Ltd. reported a good set of numbers with further improvement in net interest margin to 5.4%, sharp sequential improvement in pro forma gross non performing asset (down 70 basis points), healthy loan growth (9% QoQ) and good traction in low cost liabilities (34% YoY current account and savings account growth).

However, one-time actuarial impact of revision in mortality assumptions (Rs 381 million) resulted in higher operating expenses and weaker pro-provision operating profit/profit after tax versus estimates.

Covid-19 related stress seemed limited with slippages at ~1.7% in FY21, in line with FY20 and amongst the best in industry.

Moreover, ~20-25% of these are from gold segment.

Click on the attachment to read the full report:

Dolat Capital CSB Bank Q4FY21 Result Update.pdf

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