Why did CSB Bank shares jump by 8% today?

Synopsis: CSB Bank jumped sharply after it reported a solid Q3 business update. Deposits grew 21% YoY, while gross advances increased by 29% during the same period, highlighting strong growth across the leading segments.

The shares of this bank, backed by a strong investment company (Fairfax), are in focus after the company reported a strong update in this quarter of FY26. In this article, we will dive deeper into the highlights of it.

With a market capitalisation of Rs 8,740 crore, the shares of CSB Bank Ltd reached a day’s high of Rs 519.95 per share, up nearly 8 percent from its previous day’s closing price of Rs 482.20 per share. Over the past five years, the stock has delivered a robust return of 117 percent, outperforming NIFTY 50’s positive return of 84 percent.

Q3 Business Update

CSB bank Ltd, which is a wholly owned subsidiary of Fairfax India through a 40 percent ownership stake, relatively through FIH Mauritius Investments,noted significant gains in today’s trade after the company reported a strong buisness update.

In Q3 FY26, CSB Bank performed very well with regard to overall business activity. This excellent growth can be attributed to strong balance sheet growth across all major segments. Total deposits were up 21 percent from a year ago at Rs 40,460 crore). Term Deposits grew 27 percent than the previous year at Rs 32,144 crore. 

The remaining balance (CASA deposits) of Rs 8,316 crore was almost flat over the last year, growing only 3 percent, which illustrates that CSB Bank has been able to maintain a strong level of low-cost deposits during this environment of competition in the marketplace.

On the asset side, CSB Bank has continued to maintain a strong level of loan growth, with gross advances having increased 29 percent from the previous year and now standing at Rs 37,208 crore. The majority of the loan growth over the past year has come from the bank’s gold loan portfolio which has skyrocketed by 46 percent since last year and currently stands at Rs 19,023 crore. 

These numbers confirm CSB Bank’s position as one of the leading banks in India in the area of gold-backed lending. This instils CSB Bank’s ability to continue to build business through secured lending and maintain a disciplined approach to mobilising deposits.

The Net Interest Income (NII) for CSB Bank stands at Rs 424 crores in Q2 FY26 compared to Q2 FY25 NII of Rs 367 crores, up by about 16 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 12 percent from Rs 379 crore.

Coming down to its profitability, the company’s net profit stood at Rs 160 crore in Q2 FY26, up from Rs 138 crore in Q2 FY25, which is a growth of 16 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 119 crore, which is a growth of 34 percent.

CSB Bank Limited was established in the year 1920 and is the oldest Private Sector Bank in Kerala with over 100 years of continuous banking activity. CSB became a Scheduled Bank in 1969, expanded its operations beyond Kerala in 1972, and started international banking operations in 1975. 

CSB Bank now has an extensive network of 842 branches and 816 ATMs across the country, providing services to over 21 crore customers. CSB Bank’s various business sectors include SME, Retail, Corporate Banking and Treasury, and it offers a variety of delivery methods such as branches, ATMs, Internet and Mobile Banking.

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