CSB Bank reported a 6 per cent year-on-year (yoy) increase in fourth quarter (Q4FY26) net profit at ₹202 crore against ₹190 crore in the year ago quarter on the back of robust rise in net interest income and a sharp decline in loan loss provisions.
In FY26, the Thrissur (Kerala) – headquartered Bank’s net profit rose 7 per cent at 633 crore against ₹594 crore in FY25.
In the reporting quarter, net interest income (difference between interest earned and interest expended) in the reporting quarter was up 25 per cent yoy at ₹464 crore ( ₹371 crore in the year ago period).
Other income, including fee-based income, treasury income and recovery in written-off accounts, declined 20 per cent yoy to ₹306 crore ( ₹381 crore).
Loan loss provisions saw a sharp 78 per cent yoy fall to ₹11 crore against ₹49 crore in the year ago quarter.
As at March -end 2026, deposits and gross advances were up 20 per cent yoy (to stand at ₹44,246 crore) and 27 per cent ( ₹40359 crore), respectively.
Overall deposits
Within overall deposits, the proportion of low-cost current account, savings account (CASA) deposits declined to 20 per cent from 24 per cent a year ago.
Within gross advances, the proportion of gold loans increased to 53 per cent from 44 per cent. The advances growth was powered by gold loans, which grew 53 per cent; followed by wholesale loans, up 37 per cent. Loans under the business lending category nudged up 2.6 per cent and retail loans declined 28 per cent.
Pralay Mondal, MD & CEO, attributed the de-growth in retail loans to re-classification of loans against security, where the collateral was gold, and decline in unsecured loans, among others.
“So, next year, the retail portfolio will grow....the wholesale loan portfolio is growing fast because we have the transaction banking system in place. So, we expect this business to continue to grow well.”
Gross Non-Performing Assets (GNPAs) position deteriorated to 1.66 per cent of gross advances as at March-end 2026 against 1.57 per cent as at March-end 2025. Net NPAs position, however, improved to 0.40 per cent of net advances against 0.52 per cent.
Mondal said: “GNPAs are high compared to last year because of some slippages in first, second and third quarters. But on an inventory basis, at the end of the fourth quarter, most of them have been upgraded and recovered.”
Net interest margin increased to 3.83 per cent in Q4FY26 from 3.75 per cent in Q4FY25.
CSB Bank’s shares rose 2.73 per cent to close at ₹391.95 apiece on BSE over the previous close of ₹381.55.
Published on May 4, 2026