CSB Bank has reported its financial results for Q2 FY27 and H1 FY27 ended September 30, 2026, with the Board of Directors taking the results on record at its meeting. The results were subject to limited review by the Statutory Auditors.
Total deposits grew 18 per cent year-on-year to Rs 46,889 crore as of September 30, 2026, compared with Rs 39,651 crore a year earlier. The CASA ratio stood at 19 per cent. Net advances increased 22 per cent year-on-year to Rs 41,852 crore from Rs 34,262 crore, supported by 44 per cent growth in the wholesale portfolio and 36 per cent growth in the gold loan portfolio.
Net Interest Income (NII) grew 20 per cent year-on-year to Rs 510 crore in Q2 FY27 from Rs 424 crore in Q2 FY26, while increasing 7 per cent sequentially from Rs 479 crore in Q1 FY27. Non-interest income rose 20 per cent quarter-on-quarter to Rs 274 crore from Rs 229 crore.
The bank’s net operating income stood at Rs 783 crore, up 11 per cent sequentially from Rs 707 crore. Total operating expenses increased 11 per cent quarter-on-quarter to Rs 508 crore from Rs 457 crore. Operating profit grew 10 per cent sequentially to Rs 276 crore from Rs 251 crore.
Profit before tax increased 22 per cent quarter-on-quarter to Rs 246 crore from Rs 202 crore, while profit after tax rose 22 per cent to Rs 183 crore from Rs 150 crore. On a year-on-year basis, PAT increased 14 per cent from Rs 160 crore in Q2 FY26. The bank continued to maintain its accelerated provisioning policy during the quarter.
Return on Assets stood at 1.29 per cent and Net Interest Margin at 3.81 per cent during Q2 FY27. The Cost Income Ratio stood at 64.80 per cent, compared with 63.86 per cent in Q2 FY26 and 64.55 per cent in Q1 FY27. Cost to Assets stood at 3.59 per cent, compared with 4.11 per cent in Q2 FY26 and 3.31 per cent in Q1 FY27.
The bank’s Capital Adequacy Ratio stood at 19.55 per cent as of September 30, 2026, compared with 20.99 per cent a year earlier, remaining above the regulatory requirement.
Asset quality also improved during the quarter. Gross non-performing assets stood at 1.58 per cent as of September 30, 2026, compared with 1.75 per cent as of June 30, 2026 and 1.81 per cent as of September 30, 2025. Net non-performing assets stood at 0.33 per cent, compared with 0.39 per cent and 0.52 per cent during the corresponding periods. The provision coverage ratio, including technical write-offs, increased to 87.65 per cent from 86.83 per cent as of June 30, 2026 and 84.14 per cent as of September 30, 2025.
Commenting on the performance, the MD & CEO said, “The solid foundation established through the Sustain and Build phases of our SBS 2030 journey is now translating into meaningful business outcomes. During the quarter, we delivered strong topline performance, with deposits and advances growing by 18 per cent and 22 per cent year-on-year, respectively. Our bottom-line performance was equally encouraging, with net profit increasing by 14 per cent year-on-year and 22 per cent sequentially.”
The MD & CEO added that the bank’s liquidity position remained comfortable, while key financial and regulatory ratios remained stable and within the guided range. The quarter also saw GNPA and NNPA levels at their lowest in recent quarters, with NNPA at its lowest over the past 11 quarters and the GNPA ratio of 1.58 per cent at its lowest since Q1 FY26.
Looking ahead, the bank plans to accelerate growth across its key business segments in the second half of FY27 as it works towards its SBS 2030 aspiration of becoming a mid-sized bank.
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