CSB Bank Q1 Results Review - Weak Quarter, Partly Led By One-Offs: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.CSB Bank reported a weak quarter with sharp decline in net interest margin (-70 basis points QoQ), higher slippages for the second consecutive quarter (at 1.7%), and muted return on asset of 1.24%. Provision coverage ratio shrinkage to 60% (-5% QoQ) helped arrest credit costs at 30 bps. Margins were hurt by derecognition of penal interest (~40 bps impact), higher interest reversals, and rise in CoD. Management lowered NIM guidance to 4.5-4.8% (4.5-5% earlier) but maintained RoA of 1.5-1.8% with credit costs at 20-30 bps. We build in 15-20 bps lower NIM vs earlier over FY25/26E factoring in some penal interest impact (to be partly offset by the change in product construct) and slightly higher cost of fund. With flattish growth in corporate book and slower unsecured retail growth, we factor in 18% YoY advances growth over FY25/26E (23% earlier). With earnings downgrade of 10-12% over FY25/26E, maintain ‘Buy’ rating with revised target price of Rs 420 (from Rs 480 earlier), valuing at 1.5 times FY26E price/adjusted book value (1.7 times earlier) against return on asset/return on equity of 1.7%/16%..Click on the attachment to read the full report:.CSB Bank Soars To Two-Month High After Q1 Advances Jump 18%.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

CSB Bank Q1 Results Review - Weak Quarter, Partly Led By One-Offs: Dolat Capital

With flattish growth in corporate book and slower unsecured retail growth, the brokerage factors in 18% YoY advances growth over FY25/26E.

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CSB Bank Q1 Results Review - Weak Quarter, Partly Led By One-Offs: Dolat Capital

With flattish growth in corporate book and slower unsecured retail growth, the brokerage factors in 18% YoY advances growth over FY25/26E.

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