Fairfax-promoted CSB reported a 180% year-on-year jump in net profit to Rs 148.26 crore for the third quarter ended December 2021. The Kerala-based lender had reported a net profit of Rs 53.05 crore in the year-ago period.

Net interest income grew 21% to Rs 303 crore in the quarter ended December 31, 2021. Total business grew 24% to Rs 6,421 crore.

The bank’s advances grew 27% to Rs 14,438 crore in the December quarter, mainly contributed by gold loan which rose 61%. Deposits at the end of March grew to Rs 19,140 crore as against Rs 15,791 crore a year ago.

"While the industry grew by 12% in deposits and 6% in advances, we could outperform by recording 21% growth in deposits and 27% in advances, respectively. In terms of overall business, bank has grown a fourth...We could also open 101 branches in this 101st year of existence," said CSB Bank managing director and CEO C V R Rajendran, who is taking early retirement in March 2022 on health grounds. His five-year term would have ended in December 2022 in normal course.

The bank has a comfortable liquidity position with liquidity coverage ratio of 210.39%, which is well above the RBI requirement.

Rajendran said gold, two-wheeler, agri, MSME and SME loans will continue to be the main focus areas of the bank. The bank would focus on its digital initiatives and would be expanding its network by 20 branches.  “We want to have a proper mix of brick and click banking,” he told reporters.

However, total income during the December quarter declined to Rs 579.81 crore as against Rs 614.06 crore reported a year ago.

The bank's asset quality deteriorated as gross non-performing assets (NPAs) rose to 2.62% of the gross advances as of December 31, 2021, as against 4.11% a year back. Net NPA was at 1.36% versus 2.63% in the earlier year.

"Though we may have to wait for a month or so to fully understand the impact of the third wave of Covid-19, we are optimistic in our outlook to continue the good work in FY22 as well," he added.