CSB Bank Limited

B.K. Divakara Executive Director

CSB BANK

Satish Gundewar Chief Financial Officer

CSB BANK

25 basis point

me stability and hopes of returning to normalcy in a couple of months. FOMC has cut U.S. rates by 25 basis points. However, the commentary by the FED Chairman was more hawkish than expected, leading to USD ap

20 bps

gold prices. Global growth focus remains subdued. Indian growth is expected to add approximately 20 bps over previous projections due to GST rate cuts and steps taken by the Central Bank. The inflation

4%

lation forecast has been revised downwards, however, the projections for the next year are around 4%. The deposit growth lagged the credit growth in the system in September '25, showing signs of cre

80%

in September '25, showing signs of credit pickup. The CD ratio for the banking system went above 80% after around 6 months. The continuous lag in deposit growth has impacted the banking sector NIM s

INR160 crore

terms of top line and bottom line. On the profitability side, net profit for Q2 FY '26 stood at INR160 crores up by 16% Y-o-Y and 35% Q-o-Q. Operating profit of the bank for Q2 FY '26 grew by 39% on a Y-o-Y

16%

and bottom line. On the profitability side, net profit for Q2 FY '26 stood at INR160 crores up by 16% Y-o-Y and 35% Q-o-Q. Operating profit of the bank for Q2 FY '26 grew by 39% on a Y-o-Y basis and

35%

On the profitability side, net profit for Q2 FY '26 stood at INR160 crores up by 16% Y-o-Y and 35% Q-o-Q. Operating profit of the bank for Q2 FY '26 grew by 39% on a Y-o-Y basis and 27% on Q-o-Q b

39%

t INR160 crores up by 16% Y-o-Y and 35% Q-o-Q. Operating profit of the bank for Q2 FY '26 grew by 39% on a Y-o-Y basis and 27% on Q-o-Q basis and stood at INR279 crores. NII up by 15% and 12% on a

27%

Y-o-Y and 35% Q-o-Q. Operating profit of the bank for Q2 FY '26 grew by 39% on a Y-o-Y basis and 27% on Q-o-Q basis and stood at INR279 crores. NII up by 15% and 12% on a Y-o-Y and Q-o-Q basis, re

INR279 crore

profit of the bank for Q2 FY '26 grew by 39% on a Y-o-Y basis and 27% on Q-o-Q basis and stood at INR279 crores. NII up by 15% and 12% on a Y-o-Y and Q-o-Q basis, respectively. Other income registered a rob

15%

Y '26 grew by 39% on a Y-o-Y basis and 27% on Q-o-Q basis and stood at INR279 crores. NII up by 15% and 12% on a Y-o-Y and Q-o-Q basis, respectively. Other income registered a robust growth of 75%

12%

ew by 39% on a Y-o-Y basis and 27% on Q-o-Q basis and stood at INR279 crores. NII up by 15% and 12% on a Y-o-Y and Q-o-Q basis, respectively. Other income registered a robust growth of 75% on a Y-o

“The inflation forecast has been revised downwards, however, the projections for the next year are around 4%.”

“We expect the banking system NIM to stabilize soon and we also expect the liquidity to remain easy once RBI takes decisions on cutting rates further this financial year.”

“We are actively working to align our teams, products and processes to support this strategic priority, which will be critical in driving growth.”

“Our key focus now will be on rolling out the retail journey with the systems and processes in place, as it will enable us to achieve granularity in our portfolio and unlock valuable cross sell and upsell opportunities.”

“These are small achievements at this point of time because the size is small, but we think we will be able to sustain this based on the technology transformation and the culture which we are building in the bank.”

“Going forward, probably we will be in this range of about 3.7% to 3.9% for the rest of the year, it may move from quarter-to- quarter.”

“It will be very difficult to really pinpoint the full year NIM, however for the rest of the year, we feel that we will be in the similar range of 3.7% to 3.9%.”

“Treasury income was very weak, so do we see some recovery going forward?”

“Across various lines, we have seen that fee income has grown, and these are all granular kind of fee income, which we expect will sustain over a period of time.”

“But let us see how the yields move and basis that treasury income may come in the next quarter.”

Pralay Mondal

19

Moderator

8

Satish Gundewar

7

Mona Khetan

6

Yash Dantewadia

6

Vansh Solanki

5

Akshat Agrawal

3

Shivaji Thapliyal

2

Shivaji Thapliyal

Thank you, Bhoomika. Good afternoon, and a warm welcome to all those who have joined the call. The CSB Bank management is represented by Mr. Pralay Mondal, Managing Director and CEO; Mr. B.K. Divakara, Executive Director; and Mr. Satish Gundewar, Chief Financial Officer. We specifically thank the management of CSB Bank for giving YES Securities the opportunity to host their result call. The management will first be making some opening remarks, after which, we will throw the floor open for questions. I now invite the management to make their opening remarks. Pralay, over to you.

Pralay Mondal

Thank you, Shivaji, and good evening, everybody. Thank you for joining the call. Firstly, I will cover briefly about the economic scenario and then quickly move on to CSB specifics. We all know that the global trade negotiations across various countries have shown significant improvement in the recent past. It gives financial market some stability and hopes of returning to normalcy in a couple of months. FOMC has cut U.S. rates by 25 basis points. However, the commentary by the FED Chairman was more hawkish than expected, leading to USD appreciation and some correction in the gold prices. Global growth focus remains subdued. Indian growth is expected to add approximately 20 bps over previous projections due to GST rate cuts and steps taken by the Central Bank. The inflation forecast has been revised downwards, however, the projections for the next year are around 4%. The deposit growth lagged the credit growth in the system in September '25, showing signs of credit pickup. The CD ratio