CSB Bank Ltd (BOM:542867) Q3 2026 Earnings Call Highlights: Strong Operating Profit Growth ...

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• Net Profit:INR 153 crores, flat compared to last year's same quarter.

• Operating Profit:Grew by 32% YoY to INR 292 crores.

• Net Interest Income (NII):Increased by 21% YoY to INR 453 crores.

• Other Income:Grew by 26% YoY, constituting 19% of total income.

• Cost-to-Income Ratio:Approximately 60%, lower both sequentially and YoY.

• Net Interest Margin (NIM):Highest for the current fiscal at 3.86%.

• Return on Assets (ROA):1.22% for the quarter.

• Deposit Growth:21% YoY, faster than industry level.

• CASA Growth:3% YoY with a CASA ratio of 20.5%.

• Credit-Deposit (CD) Ratio:92%.

• Loan Growth:Advances grew by 29% YoY.

• Gross NPA (GNPA) Ratio:1.96%.

• Net NPA (NNPA) Ratio:0.67%.

• Provision Coverage Ratio (PCR):66.32%.

• Capital Adequacy Ratio:Overall 19.41%, Tier 1 at 17.66%.

• Book Value Per Share:INR 269.

• Earnings Per Share (EPS):INR 34.91.

• Return on Equity (ROE):13.38%.

• Branch Network:846 branches and 818 ATMs as of 31/12/25.

• Warning! GuruFocus has detected 6 Warning Signs with BOM:542867.

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Release Date: January 28, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• CSB Bank Ltd ( BOM:542867 ) reported a 32% year-on-year growth in operating profit for Q3 FY26, reaching INR292 crores.

• Net Interest Income (NII) grew by 21% year-on-year, amounting to INR453 crores.

• The bank's deposit growth outpaced the industry average, registering a robust 21% year-on-year increase.

• Advances grew by 29% year-on-year, significantly higher than the industry average.

• The bank maintained a strong capital position with a Tier one ratio of 17.66% as of December 31, 2025.

Negative Points

• Net profit for the quarter was flat at INR153 crores compared to the same quarter last year.

• There was a slight deterioration in asset quality, with GNPA and NNPA ratios slightly elevated at 1.96% and 0.67%, respectively.

• The cost-to-income ratio remained high at around 60%, despite being lower than previous periods.

• The bank faced challenges with slippages, particularly in the SME sector, contributing to higher credit costs.

• The proportion of bulk deposits remained high at 46-47%, which could impact cost of funds if interest rates rise.

Q & A Highlights

Q: Can you explain the decline in retail and BLG disbursements and the slippage of INR200 crores? What gives you confidence in future upgrades and recoveries? A: Pralay Mondal, CEO, explained that the decline in retail and BLG disbursements was a strategic decision due to rapid gold growth. The slippage of INR200 crores was mainly in the SME sector, with confidence in future upgrades due to well-collateralized accounts and ongoing recovery efforts.