Shares of CSB Bank Ltd. fell as much as 8.09% to ₹340.09 during Wednesday's trading session, following the release of its June quarter results. According to NDTV Profit, the stock was trading 6.03% lower by 1:05 pm, significantly outperforming the benchmark Nifty 50 index which was down 0.84%. The stock has declined 40% from its 52-week high of ₹574 and is approaching its 52-week low level of ₹317.35. By 1:20 pm, the stock was trading 4.69% lower at ₹352.80, with the BSE Sensex down 0.98% at 76,714 levels.
The Thrissur-based private lender showed mixed asset quality trends during the June quarter. As reported by Business Standard, Gross NPA ratio increased to 1.75% as of June 30, 2026, from 1.66% as of March 31, 2026, representing a slight deterioration from the previous quarter. However, Net NPA ratio remained stable at 0.39%, compared with 0.40% as of March 31, 2026. The bank's provisions for the quarter decreased 19% YoY to ₹49 crore from ₹61 crore in the corresponding period last year, indicating improved provisioning efficiency and lower credit costs.
Despite asset quality concerns, CSB Bank demonstrated robust financial performance in the June quarter. According to The Economic Times, Net Interest Income increased by 26% to ₹479 crore from ₹379 crore in the corresponding period last year. Net profit for the period increased by 27% to ₹150 crore from ₹119 crore last year, with the bank earning ₹1,516 crore in total income compared to ₹1,286 crore year-ago. Net Interest Margin improved to 3.66% in the quarter from 3.54% in Q1 FY26, though it declined sequentially from 3.83% in Q4 FY26. Provisions for the quarter decreased 19.3% to ₹49 crore compared to ₹61 crore in the same quarter last year.
On the business front, CSB Bank demonstrated strong growth momentum across key metrics. According to The Economic Times, total deposits grew 26% YoY to ₹45,415 crore as of June 30, 2026, from ₹35,935 crore a year ago, though the CASA ratio declined to 19% from 23% in Q1 FY26 and 20% in Q4 FY26. Net advances rose 24% YoY to ₹40,309 crore, compared with ₹32,552 crore in the year-ago period, driven by 47% growth in gold loans and 37% increase in wholesale advances. Managing Director & CEO Pralay Mondal highlighted that the bank's deposit and advance growth of 26% and 24% respectively significantly outpaced industry averages during the quarter. Disbursements dipped 1% year-on-year to ₹11,922 crore, compared to ₹12,088 crore last year, with gold loans growing 47% and the total gold loan book at ₹2,190 crore.
The bank's capital adequacy position showed some deterioration during the quarter. As reported by The Hindu BusinessLine, the capital adequacy ratio declined to 19.96% from 21.71% on June 30, 2025, indicating a slight weakening in the bank's capital buffer. This decline in capital adequacy ratio, despite strong financial performance and improved asset quality, may have contributed to investor concerns about the bank's overall financial strength.
