Last Updated : Jun 16, 2020 03:41 PM IST | Source: PTI

CSB Bank reduces losses to Rs 59.69 crore in March quarter

Rajendran attributed the Rs 225 crore provisions to a higher than RBI-mandated provisioning of Rs 93 crore, not utilising an option to amortise fraud provision of Rs 22 crore and Rs 4 crore due to impact of COVID-19 pandemic.

PTI

Kerala-based CSB Bank on Monday reported narrowing of losses in the March quarter to Rs 59.69 crore as against Rs 150.64 crore in the year-ago period. For FY2019-20, it reported a net profit of Rs 12.72 crore as against a loss of Rs 197.42 crore in the year-ago period.

Its chief executive and managing director C V R Rajendran said the yearly profit could have been higher by Rs 225 crore, which was set aside as provisions for a variety of purposes, including the ongoing COVID-19 pandemic.

He said the bank will focus on the gold loan segment and is targeting to increase total contribution from the vertical to 35 per cent in FY2020-21 from the present 31 per cent.

Close

Despite a tendency to redeem loans at the beginning of the year, it has seen an addition of Rs 125 crore on the loan book in this segment since April, he said.

The bank's gross non performing assets ratio reduced to 3.54 per cent from the year-ago's 4.87 per cent, while the provision coverage ratio was over 80 per cent.

Rajendran attributed the Rs 225 crore provisions to a higher than RBI-mandated provisioning of Rs 93 crore, not utilising an option to amortise fraud provision of Rs 22 crore and Rs 4 crore due to impact of COVID-19 pandemic.

During the reporting quarter, its core net interest income inched up to Rs 157.54 crore from the Rs 120.50 crore in the year-ago period on a 7 per cent increase in the loanbook and a 0.70 per cent widening in net interest margins to 3.2 per cent.

The non-interest income grew to Rs 87 crore from Rs 46 crore.

The Thrissur-headquartered bank will add 103 branches during FY2021 and will focus more on the business opportunities outside of its home state of Kerala, Rajendran said.

When asked about concerns surrounding remittances, Rajendran said the bank's diaspora deposits have grown by Rs 110 crore since April and attributed the same to money gotten back by the NRIs as they return to settle back in their homeland.

The bank's promoter Fairfax owns nearly 51 per cent of the bank and Rajendran hinted that there is no plan for a dilution at present, and added that the grouping has time till 2023 to go down to 40 per cent.

CSB Bank shares closed 5.01 per cent up at Rs 141.60 apiece on the BSE on Monday as against a correction of 1.63 per cent on the benchmark.
First Published on Jun 15, 2020 10:20 pm
Sections