Private lender CSB Bank on Thursday reported 88 per cent growth in its net profit at Rs 115 crore in the first quarter of FY23 on the back of decline in bad loans.
Canadian billionaire Prem Watsa-controlled bank had posted a net profit of Rs 61 crore during April-June quarter of the last financial year.
Total income during the first quarter rose to Rs 590.78 crore from Rs 571.53 crore in the year-ago quarter, the CSB Bank said in a regulatory filing.
The gross Non-Performing Assets (NPAs) of the bank declined to 1.79 per cent of the gross advances as of June 30, 2022, from 4.88 per cent registered a year ago.
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Net NPAs too eased to 0.60 per cent from 3.21 per cent witnessed at the end of the first quarter of the previous fiscal.
As a result, provisions other than tax and contingencies declined to Rs 1.68 crore as against Rs 93 crore in the first quarter of previous financial year.
Net Interest Income (NII) earned for the first quarter rose by 16 per cent to Rs 310.69 crore from Rs 267.75 crore.
Capital Adequacy Ratio of the bank stood at 25.46 per cent as on June 30, 2022, which is well above the regulatory requirement.
"While our Q1 growth in advances has been powered mainly by gold loans, we are now witnessing spurt in demand for credit from SME and mid corporate sectors. We started well in the first quarter with a net profit of Rs 115 crore posting 88 per cent growth on a YoY basis," the bank said in a statement.
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The bank continued to make accelerated provisions for stressed and NPA accounts, it said.
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