Monday, 19 October 2020

Q2FY21 Results

 Q2FY21 Results – CSB Bank -Surging Ahead

 

The Board of Directors of CSB Bank took on record the financial results for the quarter ended 30.09.2020 (Q2 FY 2021) which were subject to limited review in their meeting dated 19.10.2020

 Highlights

a)   Bank’s half yearly Profit After Tax is at a record high of Rs 122.5 Cr with an RoA (annualized) of 1.13% despite having made a healthy provision of Rs. 58.2 Cr for COVID during the half year. PAT is at Rs 68.9 Cr in Q2 of FY 21 as against Rs 24.6 Cr in Q2 FY 20 and Rs 53.6 Cr in Q1 FY 21 with an increase of 179.8% over Q2 FY 20 and 28.5% QoQ. RoE improves from 6.37% to 14.4% on a YoY basis.

b)   The Operating Profit of the bank is Rs 301.9 Cr for the half year ended 30.09.2020. Q2FY21 operating profit is at Rs 172.8 Cr as against Rs 63.4 Cr for Q2 FY20 (up by 172.6%) and Q1FY21 figure of Rs 129.1Cr (33.8%).

c)    Net Interest Income (NII) for H1FY21 stood at Rs 414.5 cr posting a YoY increase of 48.3%. In Q2 FY 21, the NII stood at Rs 229.2 Cr as against Rs 147.0 Cr in Q2 FY 20 with an absolute growth of Rs 82.20Cr or 56 % & 23.7% QoQ. The improvements in quarterly ratios that supported higher NIM in Q2 FY 21 vis a vis Q2 FY 20 are:

       Yield on Advances –  Up from 10.33% to 10.94% (10.74% -Q1 FY 21))

       Cost of Deposits - Down from 5.91% to 5.18% (5.48% -Q1 FY 21)

       NIM – Up from 3.69% to 4.50% (4.06% -Q1 FY 21)

       Yield on investments – Up from 6.52% to 6.74%( 6.64% -Q1 FY 21)

d)     Non-Interest Income for H1FY21 stood at Rs 171.9 Cr growing YoY at 103.6%.  For Q2FY21 the figure is Rs 97.6 Cr as against Rs 54.2 Cr for the same period as compared to last year -  an increase of 80% (Rs 74.3 Cr in Q1 FY 21) with the backing of increased treasury profits, processing fee and PSLC income.

e)   Cost Income Ratio: The ratio that was 71.54% for H1FY20 has come down to 48.52% for H1FY21. QoQ it came down from 50.26% to 47.13%.

f)     Asset Quality & Provisioning

       Gross NPA decreased from Rs 401 Cr as on 30.06.2020 to Rs 387 Cr as on 30.09.2020. Gross NPA as percentage of advances is at 3.04% as on 30.09.20 where as it was 3.51% & 3.54% respectively on 30.06.20 & 31.03.2020

       Net NPA decreased from 195 Cr as on 30.06.2020 to Rs 164 Cr as on 30.09.2020 – a decrease of 16%. Net NPA as percentage of advances decreased from 1.74% as on 30.06.2020 &  1.91% as on 31.03.2020 to 1.30% as on 30.09.2020

       Provision Coverage improves to 84.24% as on 30.9.2020 from 81.7% as on 30.06.2020 and 80.0% as on 31.03.2020.

g)    Capital Adequacy Ratio improves from 18.93% as on 30.06.2020 to 19.69% as on 30.09.2020. Leverage ratio is at 7.52% as on 30.09.2020.

h)   Comfortable Liquidity Position. Liquidity Coverage Ratio at 234% which is well above the RBI requirement.

i)     Total Deposits grew by 13% YoY and 7% QoQ. CASA ratio stood at 29.4% as on September 30, 2020 as against 28.17% as on September 30, 2019.

j)    Advances (Net) grew YoY at 11% and QoQ at 12% Gold Loans grew at 47% YoY and 29% QoQ

Performance Highlights:

 

(Rs Crore)

Q2FY21

Q2FY20

Inc/Dec%

Q1FY21

QoQ% Growth

H1 FY 21

H1 FY 20

Inc/Dec%

Interest Income

         470.0

       376.9

24.7%

422.6

11.2%

       892.6

       732.3

21.9%

Interest Expense

         240.7

       229.9

4.7%

237.3

1.4%

       478.1

       452.8

5.6%

Net Interest Income

         229.2

       147.0

56.0%

185.3

23.7%

       414.5

       279.5

48.3%

Treasury Profits

           32.4

         10.0

223.5%

43.5

-25.6%

         75.9

         13.0

485.9%

Other Income

           65.2

         44.2

47.6%

30.8

111.7%

         96.0

         71.5

34.4%

Total Non-Interest Income

           97.6

         54.2

80.1%

74.3

31.4%

       171.9

         84.4

103.6%

Net Operating Income

         326.8

       201.2

62.5%

259.5

26.0%

       586.4

       363.9

61.1%

Staff Cost

         103.8

         91.6

13.3%

86

20.7%

       189.8

       168.1

12.9%

Other Opex

           50.3

         46.2

8.8%

44.4

13.2%

        94.7

         92.2

2.7%

Total Opex

         154.0

       137.8

11.8%

130.4

18.1%

       284.5

       260.4

9.3%

Operating Profit

         172.8

         63.4

172.6%

129.1

33.8%

       301.9

       103.6

191.4%

COVID 19  Provisions

           15.6

             -  

 

42.6

-63.5%

         58.2

 -

 

Other Provisions

           65.2

         24.6

164.9%

14.9

337.4%

         80.1

         34.6

131.4%

Provisions other than Tax

           80.7

         24.6

228.1%

57.5

40.4%

       138.2

         34.6

299.0%

PBT

           92.1

         38.8

137.4%

71.6

28.6%

       163.7

         69.0

137.3%

Tax

           23.2

         14.2

63.6%

18.0

28.8%

         41.2

         24.7

66.7%

PAT

           68.9

         24.6

179.8%

53.6

28.5%

       122.5

         44.3

176.8%

Deposits

    17,468.4

  15,509.8

12.6%

16337.9

6.9%

  17,468.4

  15,509.8

12.6%

Advances

    12,537.7

  11,297.8

11.0%

11228.7

11.7%

  12,537.7

  11,297.8

11.0%

CASA

      5,134.1

    4,371.9

17.4%

4775.6

7.5%

    5,134.1

    4,371.9

17.4%

Gold

      4,949.0

    3,367.0

47.0%

3848.9

28.6%

    4,949.0

    3,367.0

47.0%

CASA%

29.4%

28.2%

 

29.2%

 

29.4%

28.2%

 

CEO Speak:

 Speaking about the performance Mr. C VR Rajendran, Managing Director & CEO said, “In this centenary year we are happy to announce a half yearly profit of over Rs 100 Cr. Now we are well entrenched on the growth track and have recorded a growth of over 10% in both deposit and advances. We could post improvement in all key metrics: NIM, Cost Income Ratio, RoA, RoE, Gross NPA, Net NPA, PCR, CRAR. We have now set our own benchmarks to be exceeded next quarter. While the asset growth so far has been contributed mostly by gold loan growth, we are committed to diversify the asset base and product suite. New Retail banking team headed by Mr. Praloy is working on the products and processes for these segments and also on the strategies on customer acquisition on a larger scale. These will be in place this quarter end and we will focus on quantum and quality growth in the coming days.”

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