Are CSB Bank latest results good or bad?

CSB Bank's latest financial results for Q2 FY26 present a complex picture of performance. The bank reported a net profit of ₹160.33 crores, reflecting a significant quarter-on-quarter growth of 35.19%, recovering from a prior quarter's lower profit figure. Year-on-year, this profit also shows a 15.84% increase from the same period last year. The total income for the quarter reached ₹1,458.36 crores, marking a robust sequential increase of 13.43% and a substantial 37.03% growth compared to the previous year.
However, while the net interest margin (NIM) improved to 3.81% from 3.54% in the previous quarter, it remains below the bank's historical levels, indicating ongoing challenges in maintaining margin sustainability amidst competitive pressures. The CASA ratio, a critical measure of deposit quality, saw a notable decline of 232 basis points to 21.17%, raising concerns about the bank's deposit franchise and its ability to mobilize low-cost funds effectively.

Asset quality metrics showed stability, with gross non-performing assets (NPAs) slightly declining to 1.81% from 1.84% in the previous quarter, and net NPAs improving to 0.52% from 0.66%. The bank's capital adequacy ratios remained strong, providing a buffer for future growth.

Overall, CSB Bank's results indicate strong profit growth and total income performance, but the decline in the CASA ratio and persistent margin pressures highlight potential risks to future profitability. The company saw an adjustment in its evaluation, reflecting these mixed operational trends.