Q2 2025 CSB Bank Ltd Earnings Call Transcript
Key Points
- CSB Bank Ltd (BOM:542867) reported a net profit of INR 138 crores, marking a 22% increase quarter-on-quarter and a 4% increase year-on-year.
- The bank's Net Interest Margin (NIM) remained stable at 4.3% despite rising costs of funds.
- Deposits grew by 25% year-on-year, significantly outpacing the industry growth rate of around 12%.
- The gold loan portfolio registered a robust growth of 28% year-on-year.
- The bank's capital adequacy ratio (CAR) is strong at 22.74%, with Tier 1 capital at 21.37%.
- The cost of funds remains elevated, putting pressure on the bank's margins.
- The CASA ratio is relatively low at just above 24%, indicating a reliance on term deposits.
- The bank's NIM is impacted by regulatory guidance on penal interest, reducing it by approximately 25 basis points.
- Retail inflation in India remains volatile, and industrial output was marginally negative, posing economic challenges.
- The bank's cost-to-income ratio is high, with a target to reduce it below 50% by 2030, indicating current inefficiencies.
Ladies and gentlemen, good day, and welcome to CSB Bank's Q2 FY25 Conference Call hosted by YES Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Shivaji Thapliyal from YES Securities. Thank you, and over to you, sir.
Thank you, Sidhant. Good evening, and a warm welcome to all those who have joined the call. The CSB Bank management is represented by Mr. Pralay Mondal, Managing Director and CEO; Mr. Satish Gundewar, Chief Financial Officer; and Mr. B.K. Divakara, Executive Director.
We specifically thank the management of CSB Bank for giving YES Securities the opportunity to host their result call. The management will first be making some opening remarks, after which we will throw the floor open for questions. I now invite the management to make their opening remarks.
Pralay, over to you.
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