CSB Bank Ltd.profit ₹183 Cr, NIM 3.81%, gold loans to ease to 50%

CSB Bank's Q2 FY27 call, held on 23 October 2026, reported net profit of ₹183 crore, up 22% on the quarter and 14% on the year, with net interest income of ₹510 crore, up 20%, and net interest margin of 3.81% against 3.66% in Q1. ROA improved to 1.29% from 1.09% and ROE to 14.74%.

Gross advances grew 22% and deposits 18%, with gold loans up 36% and corporate loans up 44%, while SME growth was moderate and is expected to resume this quarter. Gross NPA was 1.58% and net NPA 0.33%, with credit cost of 24 basis points and provision coverage of 87.65% including write-offs. Core fee income rose 27% but total fee income fell 22% on lower treasury and PSLC income, and cost-to-income was 64.8%. Management plans to cut the gold loan share from 53% last year to about 50% by year end, expects CASA to grow faster than term deposits only from FY2028, and sees ROA of 1.3% to 1.5% this year and above 1.5% next year.

It said the draft insurance rules could cost at most 0.5% to 1% of fee-to-income, and the board has not discussed the Fairfax and IDBI deal.