Transcript of the earnings call Q1 of FY2027

“CSB Bank Limited Q1 FY2027 Earnings Conference Call” July 22, 2026, 05.30 PM IST MANAGEMENT: MR. PRALAY MONDAL MANAGING DIRECTOR & CEO - CSB BANK MR. B.K. DIVAKARA EXECUTIVE DIRECTOR - CSB BANK MR. SATISH GUNDEWAR CHIEF FINANCIAL OFFICER - CSB BANK ANALYST: MR. SHIVAJI THAPLIYAL YES SECURITIES LIMITED CSB Bank Limited July 22, 2026 Moderator: Ladies and gentlemen, good day and welcome to CSB Bank Limited Earnings Call for Q1 FY2027 hosted by Yes Securities Limited. Please note all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. With that, I hand over the call to Mr. Shivaji Thapliyal from Yes Securities. Thank you and over to you, Sir! Shivaji Thapliyal: Thank you Swapnil. Good evening and a warm welcome to all those who have joined the call. The CSB Bank management will be represented by Mr. Pralay Mondal - Managing Director and CEO, Mr. B.K. Divakara - Executive Director and Mr. Satish Gundewar - Chief Financial Officer. We specifically thank the management of CSB Bank for giving Yes Securities the opportunity to host their result call. The management will first be making some opening remarks, after which we will throw the floor open for questions. I now invite the management to make their opening remarks. Pralay, over to you! Pralay Mondal: Thank you Shivaji and good evening and thank you for joining our Q1 FY2027 earnings call. To start with, on the economic scenario - the global economic conditions remain stable despite a surge in geopolitical risks in recent weeks. US rates have been stable with probability of rate hikes in this year reducing due to incoming data. India’s annual retail inflation rate based on consumer price index, rose to an 18 month high of 4.38%, which is still a provisional number in June 2026. This increase was primarily driven by a rise in consumer food price index CPI, which climbed to 5.32%. This is largely due to supply side effects of increase in oil prices. Liquidity situation remains stable and is likely to remain so for the next quarter. Money market and G-Sec rates have softened for this quarter. However, recent escalation in Gulf war did spook the rates. CSB Bank’s liquidity remains quite stable. On the CSB specific results, key highlights on the profitability side - Net profit stood at Rs.150 Crores for Q1 FY2027, with a 27% Y-o-Y growth over Q1 FY2026. Operating profit of the bank grew by 14% on Y-o-Y basis and stood at Rs.251 Crores for Q1 FY2027. Net interest income grew by 26% to Rs.479 Crores. Other income degrew by 7%, over Q1 FY2026, mainly due to decline in treasury profit. Other income excluding treasury profit grew by 13% in Q1 FY2027. Cost-to-income ratio for Q1 FY2027 was marginally lower than Q1 FY2026 and stood at 64.55%. NIM for Q1 FY2027 stood at 3.66% against 3.54% for Q1 FY2026. ROA for the quarter ended June 30, 2026, stood at 1.09% against 1.03% in Q1 FY2026. Contingency provisions are held intact, and bank is continuing with the accelerated loan provisioning policy, which will aid the bank in transitioning towards the ECL framework. Page 2 of 16 CSB Bank Limited July 22, 2026 On the liability side, our funding base continued to improve. Deposits recorded a strong Y- o-Y growth of 26%, significantly outpacing the industry growth rate of 13.4%. CASA ratio stands at 19.41%. To aid liquidity, we also availed both domestic and FCY borrowings based on cost considerations. On the liquidity side, we efficiently managed the liquidity risk. Average LCR for the quarter was 123%, and NSFR ratio was 126%. On the asset side, the advances grew by 24% Y-o-Y as against industry growth of 18.6%. Yield on advances for Q1 FY2027 stood at 10.65%. On the asset quality metrics, the GNPA and NNPA ratios for the quarter stood at 1.75% and 0.39% respectively. PCR stands at 77.96% without PWO, almost 78%, which is high compared to what we used to have before. Bank is holding a provisioning buffer of around Rs.198 Crores, over and above regulatory requirements, including a contingency provision of around Rs.105 Crores. On the capital side, CRAR continues to be well above the regulatory requirement and stood at 19.96%. Tier-1 ratio stood at 18.96%. Our risk weights are at around 42% of the total exposure and we are very well capitalized given this low proportion. On the shareholder value creation - Book value per share stands at Rs.289 whereas EPS for Q1 FY2027 stood at Rs.35 as against Rs.27 for Q1 FY2026. ROE for the quarter improved from 10.9% in Q1 FY2026 to 12.71% in Q1 FY2027. On the distribution side, we have a network of 868 branches and 835 ATMs as on June 30, 2026. In conclusion, I would like to say that the quarter witnessed healthy growth across our key business parameters, especially on Y-o-Y basis. We are a very seasonal bank and every year it is seen that Q1, Q2, Q3, Q4 operates differently for us and from that seasonality perspective, we have done well on Y-o-Y basis. Our deposits and advances grew by 26% and 24% year-on-year respectively, significantly outperforming the average industry growth trends. Importantly, in contrast to the broader industry patterns, deposit growth outpaced advances growth, resulting in a favourable improvement in our credit deposit ratio, which is now marginally below 90%. We further tapped the funding streams optimally, leading to a comfortable liquidity position and room for growth. With the comfortable liquidity buffers to support growth, I do not see liquidity as a risk for us in the near term. On the advances front, the corporate and gold portfolios continued to perform well. Amidst the market uncertainties, we remain measured in our approach towards the SME/BLG portfolio - as we call it and other unsecured retail book consistent with our size and risk appetite and will resume scale once the environment turns conducive. Our lending strategy continues to be guided by a balanced focus on profitability, asset quality and sustainable long-term growth. On the liability side, we are enhancing our sales capabilities, deepening our distribution reach and driving greater alignment across customer acquisition channels. These efforts are expected to drive stronger customer engagement, improve conversion rates, and further strengthen our ability to generate granular and sustainable deposit growth. From a profitability perspective, our operating performance remained resilient. Operating profit Page 3 of 16 CSB Bank Limited July 22, 2026 increased by 14%, while net profit registered a growth of 27% over the corresponding period last year. Looking ahead, our objective is not merely to grow, but to grow efficiently by improving operating leverage, increasing employee productivity, deepening customer engagement, and accelerating the payback from our technology transformation initiatives. We remain firmly committed to delivering our SBS 2030 milestones in a progressive and disciplined manner quarter after quarter. Just to end my initial comments, I would say that the entire technology transformation went extremely well and now we are going to leverage that. We are rolling out our retail liability acquisition channel, because now we can launch the products we want to. Even on the transaction banking side, say trade, supply chain or CMS – some systems are already in place and some will be in place in the next three to four months. We are looking at enhancing our transaction banking products and services. We will continue to leverage and build the franchise. Now the journey begins in the scale phase in true earnest in terms of scaling the bank with respect to new customer acquisition, a more balanced growth across segments and the franchise creation. With that, I hand over to you for questions. Thank you very much. Moderator: Thank you so much, Sir. Ladies and gentlemen, we will now begin with the question-and- answer session. We will take our [Showing first 8,000 characters — download PDF for full document]