CSB Bank Q1 Result Review - Strong Quarter Despite Elevated Opex: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.CSB Bank Ltd. reported good set of numbers with net interest income/pre-provision operating profit growth of 17% YoY each. Sequentially stable net interest margin at 5.4%, robust core fee lines, and low credit costs aided profit after tax growth of 15% and return on asset of 1.8% for the quarter. With continued investment towards people and technology, opex growth was up sharply (11.5% QoQ), partly owing to one-offs. Loan growth at 2% during the quarter was led by gold (up 4% QoQ) other retail (up 6% QoQ).  We tweak estimates, factoring higher other income and lower slippages, offset by rise in opex assumptions. .Outlook and view CSB Bank stands out for its robust liability franchise, superior NIM and strong asset quality metrics. The next two years could see significant investment in people, distribution and technology, in preparation for scale phase from FY26. A likely Fairfax stake in IDBI Bank Ltd. remains an overhang. Maintain 'Buy' with an unrevised target price of Rs 370 (1.5 times FY25E adjusted book value). The stock trades at 1.2 times FY25E ABV. Risks to our view: Weaker than anticipated growth trends, higher than anticipated pressure on NIM, inability to contain opex..Click on the attachment to read the full report:.IndusInd Bank Q1 Results Review Strong Growth, Earnings Momentum: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

CSB Bank Q1 Result Review - Strong Quarter Despite Elevated Opex: Dolat Capital

Growth driven by gold; credit costs continue to surprise.

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