CSB Bank Q1FY26 Business Update: Gross Advances Surge 32% YoY to ₹33,142 Cr, Gold Loans Up 36%

Thrissur, July 3, 2025: CSB Bank Ltd (NSE: CSBBANK, BSE: 542867) has released its provisional business performance data for the quarter ended June 30, 2025 (Q1FY26), demonstrating strong growth across both advances and deposits. The bank’s gold loan portfolio remains a primary driver of growth, exhibiting significant expansion.

Key Financial Highlights (₹ in crore)

*Excludes receivables secured against gold

Note: Data is provisional and subject to limited review by the Bank’s Joint Statutory Auditors.

Strategic Business Momentum

CSB Bank’s gross advances witnessed a sequential growth of 4.1% and a robust year-on-year surge of 32%. This impressive growth was primarily fueled by gold loan disbursements, which expanded by 36% year-on-year to ₹14,928 crore.

This performance underscores CSB Bank’s continued strength in its niche gold-loan franchise, which remains a core segment of its retail lending book. The bank has consistently focused on leveraging its strong presence in gold loans, benefiting from higher yields, lower credit costs, and lower risk weights associated with this portfolio.

On the liabilities side, total deposits grew by 20% year-on-year to ₹35,990 crore. While term deposits showed a strong 22% increase, CASA (Current and Savings Account) deposits grew by 14% year-on-year. This indicates improving customer stickiness, though the higher growth in term deposits reflects a broader industry trend where customers are opting for higher-yield term products in a rising interest rate environment.

The bank aims to improve its CASA ratio by focusing on new customer acquisitions and product propositions, although achieving significant growth in CASA balances can take time.

Share Price Performance Recap

On July 2, the shares of CSB Bank closed at ₹391.80, down 1.28% and 5.10%. The shares made an intraday high of ₹399.25 and a low of ₹390.35. It remains to be seen at what price the shares open today.

What’s Ahead?

CSB Bank’s consistent growth in its high-margin gold loan book positions it favorably to sustain profitability, even amidst tighter systemic liquidity conditions. The bank’s ability to maintain balance sheet expansion while ensuring healthy asset quality will be crucial in the upcoming quarters as the monetary environment continues to evolve.

The bank has also been investing significantly in technology and branch expansion to become a full-service new-age bank, which may impact operating expenses in the near term but is expected to drive long-term growth and efficiency. Previous reports have indicated management’s confidence in maintaining credit book growth significantly faster than the system average and an expectation for Net Interest Margins (NIM) to stabilise or improve going forward.

About CSB Bank

Founded in 1920 and headquartered in Thrissur, Kerala, CSB Bank Ltd is a listed private sector bank in India (BSE: 542867, NSE: CSBBANK). It is known for its strong presence in gold loans, SME banking, and a growing retail footprint across South India. The bank continues to focus on high-yield lending segments and building a robust deposit franchise.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/099312c9-4d81-4fc9-ab7f-56922ac5eb31.pdf

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