CSB Bank Reports 6% Q4 Profit Increase Driven by Lower Provisions and Steady Growth.

CSB Bank, supported by Fairfax, has demonstrated a solid performance in the fourth quarter of FY26, achieving a 6% year-on-year increase in net profit to Rs 202 crore, up from Rs 190 crore. This growth can be attributed to a significant reduction in provisions, which declined by 62% to Rs 23 crore. However, the pre-provision operating profit fell by 7% to Rs 294 crore, reflecting higher operational expenditures and a 20% decrease in other income. Notably, the net interest margin improved to 3.83% from 3.75% a year earlier, indicating enhanced profitability in core lending activities.

Over the fiscal year, CSB Bank posted a net profit of Rs 633 crore, representing a 7% growth from Rs 594 crore in FY25. Operating profit surged by 19% to Rs 1,085 crore, indicating robust business expansion. The bank’s net advances experienced a remarkable year-on-year increase of 26% to Rs 39,848 crore. This growth was driven primarily by a substantial 53% uplift in gold loans and a 37% rise in wholesale lending. Although the bank’s asset quality showed sequential improvement, it did deteriorate slightly year-on-year, with gross non-performing assets (NPA) rising to 1.66% from 1.57% a year earlier.

In contrast, Manappuram Finance reported a 9.6% decline in its standalone net profit for Q4 FY26, bringing the total to Rs 497 crore from Rs 550 crore in the same period last year. This dip was largely due to increased finance costs and provisions for bad loans, which rose to Rs 932 crore and Rs 216 crore respectively. Despite these challenges, the group’s consolidated net profit saw a turnaround, reaching Rs 405 crore compared to a net loss of Rs 203 crore in the previous year. The board has proposed a dividend of Rs 0.50 per equity share, consistent with a 25% payout policy, demonstrating a commitment to returning value to shareholders amidst fluctuating financial results.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)