CSB Bank is entering the scale phase of its SBS 2030 transformation plan, moving beyond its traditional reliance on gold loans for growth. According to reports from Business Standard, the bank's MD and CEO emphasized that "We will no longer be dependent on growth only through gold loans." The transformation aims to create a full-franchise bank across all four key segments: wholesale, SMEs, retail, and gold loans. The bank's wholesale franchise is currently growing well, while SME growth awaits environmental clarity, and retail expansion will focus on acquiring customers and new products launched through technology transformation.
For FY27, CSB Bank projects credit growth of 25-30% for assets and 20% growth in deposits, maintaining the same growth trajectory as the previous financial year. As reported by Business Standard, the bank is "focusing — for the first time — on Casa in a slightly bigger way" due to the launch of new products. The asset book grew 27% and deposits increased 20% in the current financial year, with deposits expected to continue growing at this level going forward.
The bank's net profit for Q4 grew 6% year-on-year to ₹202 crore, driven by strong balance sheet growth and improved asset quality. According to Business Standard, advances grew 7% and deposits increased 20% during the quarter. Credit cost improved to 18 basis points, marking the lowest level in the last five to six quarters. Gross NPAs improved to 1.66% from 1.96% in the previous quarter, while net NPAs declined to 0.4% from 0.67% in the December quarter.
The bank's technology transformation has been running smoothly, with surrounding systems also operating effectively. As reported by Business Standard, the bank is now implementing its transaction banking system. Credit cost and asset quality showed significant improvement, with the bank recovering from some SME slippages in the previous quarter. The bank's core income has improved substantially, with most execution-focused ratios and key parameters performing well, though market challenges like bond yields affected performance.
