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Crisil Ratings reaffirms ratings of CSB Bank at 'A/A1+' with 'stable' outlook
(21 May 2025, 13:11)

Crisil Ratings stated that the ratings continue to reflect the healthy capitalisation levels along with the commitment of support from Fairfax, in case of exigency and stable deposit profile.

These strengths are partially offset by the modest earnings profile and limited track record in the new non-gold loan book, as well as modest scale of overall operations.

The agency further said that factors like substantial scale-up of operations with return on average total assets of around 1.75% on a sustained basis and track record of profitably scaling up non-gold loan book could lead to ratings upgrade.

However, factors that could result in an adverse rating acion include deterioration in asset quality, as seen in GNPAs increasing to beyond 5% and translating into pressure on earnings and capitalisation metrics, any pressure on the deposit profile with deposit outflows and weakening of capital position with significant deterioration in the CET 1 ratio.

CSB Bank is an old private sector bank with a history of over 100 years and operates 829 branches as on 31 March 2025. The business is concentrated in Kerala with the remaining spread across Tamil Nadu, Andhra, Karnataka, and Maharashtra.

The bank has reported a 4.8% rise in net profit to Rs 594 crore on a 18.9% increase in total income (net of interest expenses) to Rs 2,448 crore in FY25 as compared with FY24.

The scrip rose 0.55% to currently trade at Rs 356.15 on the BSE.

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