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Business News/ Companies / Company Results/  Loan collections to slow down due to lockdowns in Kerala, Tamil Nadu: CSB
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Loan collections to slow down due to lockdowns in Kerala, Tamil Nadu: CSB

The bank’s asset quality deteriorated sequentially with gross non-performing assets as a percentage of total loans at 2.68% at the end of March quarter compared with 1.77% in the third quarter

CSB Bank has reported a net profit of Rs42. 9 crore at the end of March quarter owing to higher core income and lower provision. The bank had reported a loss of Rs59.7 crore a year ago. Its core income, or net interest income, rose by 75% to Rs275 crore as against Rs157.54 crore a year ago.Premium
CSB Bank has reported a net profit of Rs42. 9 crore at the end of March quarter owing to higher core income and lower provision. The bank had reported a loss of Rs59.7 crore a year ago. Its core income, or net interest income, rose by 75% to Rs275 crore as against Rs157.54 crore a year ago.

MUMBAI : Kerala-based CSB Bank Ltd is expecting a slowdown in loan collections following the second covidled lockdowns in Kerala and Tamil Nadu. CSB’s management told the media after announcing fourth quarter earnings that with collection efficiency at 93-94% in April, recovery could see some impact.

The small private sector lender has reported a net profit of Rs42. 9 crore at the end of March quarter owing to higher core income and lower provision. The bank had reported a loss of Rs59.7 crore a year ago.

The bank’s core income, or net interest income, rose by 75% to Rs275 crore as against Rs157.54 crore a year ago.

The bank’s asset quality deteriorated sequentially with gross non-performing assets (GNPAs) as a percentage of total loans at 2.68% at the end of March quarter compared with 1.77% in the third quarter. GNPAs, however, stood higher at 3.5% in the March quarter last year. Provisions coverage ratio improved to 84.9% at the end of March quarter from 80.02% last year.

In terms of business, the bank grew its loan book by 27% and deposits book by 21% year-on-year. The bank opened 101 branches in FY21 and is looking to open another 200 branches in states including Tamil Nadu, Andhra Pradesh, and Karnataka.

“I feel that we can fully focus on growth in FY22 without any baggage of the past. Gold loans, two-wheeler loans, agri loans, MSMEs and SMEs will continue to be in the main focus. Revised structure and policies are in place for SME vertical and the focus will be on select segments, customer priorities and value proposition. Retail team will be working on improved product offerings and the related process framework with due focus on customer acquisition," said C.V. Rajendran, managing director and chief executive of CSB Bank Ltd.

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ABOUT THE AUTHOR
Gopika Gopakumar
Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
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Published: 08 May 2021, 04:23 PM IST
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