Fairfax-controlled CSB Bank is planning to expand its branch network by 25% every year as it seeks to grow in size.

 While retail will lead the bank’s credit growth, the strategy is to expand the footprint through partnerships.

 “Most of our ratios and basic parameters are looking very good. The only place where we need to now start focusing on is growth in the balance sheet so that we can become a larger bank over a period of time. We must have all the products and services. We intend to expand our branch network by 25% every year,” said CSB Bank deputy managing director Pralay Mondal.

 CSB Bank reported an over three-fold jump in its net profit for the fiscal fourth quarter ended March to Rs 130.67 crore compared to Rs 43 crore a year ago.

 The bank’s total income during the March quarter rose to Rs 583.17 crore compared to Rs 560.87 crore in the year-ago quarter.

 The private sector lender’s asset quality improved with the gross non-performing asset (NPA) ratio falling to 1.81% in the quarter ended 31 March 2022, from 2.66% a year earlier. In value terms, gross NPAs fell to Rs 289.51 crore from Rs 393.49 crore. NPA in gold loans decreased to Rs 28.81 crore, from Rs 45.39 crore a year ago.

 Net NPAs fell to 0.68% (Rs 106.99 crore) from 1.17% (Rs 168.81 crore).

The bank’s full-fiscal net profit ended March 2022 increased by over two-times to Rs 458.49 crore. A year ago, this was at Rs 218.40 crore.

Total income during the year rose to Rs 2,285.11 crore from Rs 2,175.42 crore.

Net interest income for FY22 rose 22.51% to Rs 1,153.30 crore, powered by the spread on loans and the volume effects.

 Yield on advances improved by 24 basis points over the previous year to 11.21% even as average advances grew by 14%.

 The cost of deposits reduced by 76 basis points to 4.31% while the average CASA (current account savings account) increased by 22%.

 The bank’s net interest margin improved by 46 basis points to 5.27% in FY22.

 The board of directors did not recommend any dividend for the year ended 31 March 2022.