CSBBANK

SEC/378/2022 October 21, 2022 BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th floor, Dalal Street, Bandra-Kurla Complex, Mumbai 400001. Bandra (E), Mumbai 400051. Scrip code: 542867 Symbol: CSBBANK Dear Sir/Madam, Press Release and Presentation to Institutional Investors/Analyst - Unaudited Financial Results for the quarter and half year ended September 30, 2022. -------------------------------------------------------------------------------------------------------------------------------------- Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation of our letter no. SEC/377/2022 dated October 21, 2022, please find enclosed a copy of press release and the Investor Presentation on financial and business performance of the Bank for the quarter and half year ended September 30, 2022. This intimation shall also be made available on the Bank’s website at www.csb.co.in Kindly take the same on records. Thanking You, Yours faithfully, Sijo Varghese Company Secretary Encl: As above. CSB Bank Limited Regd. Office: CSB Bhavan, St. Mary's College Road, Thrissur – 680020, Kerala, India. Tel: +91 487–2333020 | Fax: +91 487–2338764 | Website: www.csb.co.in | Email: board@csb.co.in | CIN: L65191KL1920PLC000175 PRESS RELEASE CSB Bank Limited Financial Results for the Quarter& Half Year Ended September 30, 2022 The Board of Directors of CSB Bank took on record the financial results for the quarter (Q2 FY 2023) and half year ended 30.09.2022 (H1 FY 2023) which were subject to limited review in their meeting dated 21.10.2022 Highlights a) Profit After-tax: Bank could cross the double century mark by recording a net profit of Rs235.07 Cr in H2 FY 23 vis a vis a profit of Rs 179.57 Crs for the same period last year. Despite the prevailing macroeconomic environment, which is volatile and challenging, Net profit improved by 5% on a sequential basis also from Rs 114.52 Cr to Rs 120.54 Cr. Bank continued its accelerated provisioning policy during this quarter as well. RoA improved from 1.53% in H1FY22 to 1.81% in H1FY23 while QoQ the sequential improvement is from 1.75% to 1.87%. b) Operating Profit of the bank is at Rs 157.35 Cr for the quarter ended 30.09.2022 vis a vis Rs 149.38 Crs as on 30.09.2021 and Rs 154.72 Crs as on 30.06.2022. The operating profit for the half year ended 30.09.2022 is Rs 312.07 Crs vis a vis Rs 324.12 Crs impacted by Treasury Losses and draining of PSLC income c) Net Interest Income (NII) for H1FY23 stood at Rs 635.66 Cr posting an increase of 16% over H1 FY 22. In Q2 FY 23, the NII stood at Rs 324.97 Cr as against Rs 278.38 Cr in Q2 FY 22 or by17 %. d) Non-Interest Income ex treasury posted a growth of 48% sequentially backed by improved Banca commission, processing fee, other commission income etc. Other income for the half year ended 30.09.2022 is Rs 111.23 Crs (PSLC income-: Nil) as against Rs 119.80 Crs (which includes PSLC income of Rs 33.40 Crs) as on 30.09.2021. e) Cost Income Ratio: as on 30.09.2022 is 57.57% as against 52.14% as on 30.09.2021. Sequentially, Cost income ratio improved from 57.67% to 57.46% on QoQ basis f) Asset Quality & Provisioning Both GNPA and NNPA ratios have improved on QoQ basis. PCR continues to be above 90% Particulars Q2 FY 23 Q1 FY 23 FY 22 Gross NPA 291.04 293.01 289.51 Gross NPA % 1.65% 1.79% 1.81% Net NPA 98.86 96.75 106.99 Net NPA % 0.57% 0.60% 0.68% Provisioning Coverage Ratio 90.14% 90.51% 89.65% g) Capital Adequacy Ratio is at 25.14 %, which is well above the regulatory requirement. Leverage ratio is at 9.21% as on 30.09.2022. h) Comfortable Liquidity Position. Liquidity Coverage Ratio is comfortable at 125.76% CSB Bank Limited Regd. Office: CSB Bhavan, St. Mary's College Road, Thrissur – 680020, Kerala, India. CIN: L65191KL1920PLC000175 | Phone: 0487-2336461 / 6619228 | E-mail: board@csb.co.in | www.csb.co.in i) Total Deposits grew by 10.13% YoY and CASA ratio stood at 34.27% as on 30.09.2022as against 32.58% as on30.09.2021 j) Advances (Net) grew by 24.15% YoY to Rs 17468.33 Cr as on 30.09.2022 Performance Highlights: QoQ Inc/ Inc/ (Rs Crore) Q2 FY23 Q2 FY22 Q1 FY23 % 6M FY 23 6M FY 22 Dec% Dec% Growth Interest Income 555.18 495.85 12% 535.93 4% 1,091.11 991.10 10% Interest Expense 230.21 217.47 6% 225.24 2% 455.45 444.97 2% Net Interest Income 324.97 278.38 17% 310.69 5% 635.66 546.14 16% Treasury Profits -21.37 -10.25 9.93 -11.45 11.24 Other Income 66.31 70.04 -5% 44.92 48% 111.23 119.80 -7% Total Non-Interest Income 44.94 59.79 -25% 54.85 -18% 99.79 131.03 -24% Net Operating Income 369.91 338.17 9% 365.54 1% 735.45 677.17 9% Staff Cost 129.00 119.16 8% 122.21 6% 251.22 216.38 16% Other Opex 83.54 69.63 20% 88.61 -6% 172.15 136.68 26% Total Opex 212.55 188.79 13% 210.82 1% 423.37 353.05 20% Operating Profit 157.36 149.38 5% 154.72 2% 312.08 324.12 -4% Standard Asst Provision 4.36 6.42 -32% 1.88 132% 6.24 2.37 163% Other Provisions -8.10 -15.49 -0.20 -8.30 81.77 Provisions other than Tax -3.73 -9.07 1.68 -2.05 84.15 PBT 161.09 158.45 2% 153.04 5% 314.13 239.97 31% Tax 40.54 39.88 2% 38.52 5% 79.06 60.40 31% PAT 120.55 118.57 2% 114.52 5% 235.07 179.57 31% Deposits 20,986.61 19,055.49 10% 20,266.77 4% 20,986.61 19,055.49 10% Advances(Net) 17,468.33 14,070.11 24% 16,142.14 8% 17,468.33 14,070.11 24% CASA 7,192.81 6,207.98 16% 7,121.88 1% 7,192.81 6,207.98 16% Gold 8,035.50 5,460.22 47% 7,107.00 13% 8,035.50 5,460.22 47% CASA% 34.27% 32.58% 2% 35.14% -1% 34.27% 32.58% 2% CEO Speak: Speaking about the performance Mr. Pralay Mondal, Managing Director & CEO said, “The current macro-economic scenario is quite volatile and challenging. In the midst of all the prevalent adversities, we kept our focus firm and could do well in the second quarter of FY 23. This quarter witnessed a repo hike of 100 bps from 4.90% to 5.90%. The prudent treasury strategies helped us with minimal shocks. While our deposit growth was in line with the industry trend, we could outgrow in the advance portfolio. Despite having a negative impact of about Rs 33 Crs due to the lack of opportunities in the PSLC market, the boosting up of other income streams helped us to contain the reduction to a decent extent. In terms of profitability, bank could cross the Rs 200 Cr mark in H2 FY 23 while keeping the provision buffers intact. The key ratios like NIM, CRAR, LCR, RoA etc continue to be strong. In the coming quarters our focus will be more on liabilities given the CD ratio crossing 80% in H1. NR business, Remittance etc will have tremendous opportunities in H2. Set up of new retail verticals such as HCF, CE/CV etc is also planned for H2. Our SME& Corporate teams have definite growth plans for the upcoming half year. Our endeavor would be to improve continuously quarter on quarter in terms of both topline and bottom-line parameters”. CSB Bank Limited Regd. Office: CSB Bhavan, St. Mary's College Road, Thrissur – 680020, Kerala, India. CIN: L65191KL1920PLC000175 | Phone: 0487-2336461 / 6619228 | E-mail: board@csb.co.in | www.csb.co.in About CSB Bank Limited: We are one of the oldest private sector banks in India with an existence of over 100 years. While our Bank has a long operating history as a traditional bank, we are currently focusing on implementing strategic changes in business model to function efficiently like a full service new age private sector bank. We have a strong base in Kerala along with significant presence in Tamil Nadu, Maharashtra, Karnataka and Andhra Pradesh We offer a wide range of products and services to our overall customer base of 2.1 million, with particular focus on SME, Retail, and NRI customers. We deliver our products and services through multiple channels, including 608 branches (excluding three service branches and three asset recovery branches) and 507ATMs/CRMs spread across the country and various alternate channels such as micro ATMs, debit cards, internet banking, mobile banking, point of sale services, and UPI. CSB Bank is listed on both NSE and BSE. For further details, please visit www.csb.co.in Safe Harbour: Some of the statements in this document that are not historical facts; are forward-looking statements. These forward- looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry. Kindly direct your enquiries to: Smt Sreelatha M ,DGM – Strategy & Planning Dept CSB Bank Limited Contact: 0487 6619203 Email : msreelatha@csb.co.in Mumbai 21.10.2022 CSB Bank Limited Regd. Office: CSB Bhavan, St. Mary's College Road, Thrissur – 680020, Kerala, India. CIN: L65191KL1920PLC000175 | Phone: 0487-2336461 / 6619228 | E-mail: board@csb.co.in | www.csb.co.in Company Business Digital Earnings Strategy Overview Overview Penetration Key Information • A century young Total provisions down Well Capitalised Organisation by Rs 167Cr (53%) YoY Growth Asset Improved Costand & Strong (12M Period) • 608 Branches & 507 Momentum Quality Profitability Revenue Liquidity ATMs/CRMs Position • 11 Zonal Offices *PAT of Rs 235.07 Cr • 2.1Mn+ happy customers * NII growth of 16% *Net Advances grew *Strong capital *GNPA ratio of 1.65% for H1 FY 23 (up by YoY&5%QoQ by24%YoY comfort with a CRAR • Presence in 16 states & (down by 246 bps 31% YoY) Q2 PAT at Rs of 25.14% as on YoY) 4 UTs 120.55Cr * NIM above 5% on a *Gold loan grew by 30.09.2022 quarterly and half 47%YoY • Total business of *RoA Q2 FY23 : 1.87% *Net NPA ratio of (upby12bpsQoQ) y 5 e .3 a 8 rl % y re b s a p s e is c - t 5 iv .6 e 0 ly % & *Deposits grew by *TierIratioof23.63% 0.57% (down by 206 ≈ Rs 39,300 Cr RoAH1FY23-1.81% 10%YoY bpsYoY) • 7 bancassurance tie ups *Bookvaluepershare with industry leaders. *CASA book grew by up by 24% YoY (Rs *PCRof90.14% *RoE H1 FY23 : *Other income ex 16%YoY&CASARatio 127toRs158) 18.49% Treasury increased by isat34.27% 48%QoQ * Healthy CD Ratio *Strong liquidity -LCR *Creditcostcontinues tobenegative (Gross): 87.54% as on of 126 % & NSFR at 30-09-2022 159% CSB Bank Investor Presentation Q2FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Profitability Ratios Amt in Cr Operating Profit QoQ Net Profit QoQ 157 148 155 131 119 115 121 149 148 142 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Operating Profit YoY Net Profit YoY 324 312 235 238 180 122 79 44 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 -9 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 -48 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Prudential Provisioning Policy Asset Classification RBI Norms Our Norms Secured 15% 25% Amount Sub Standard Assets (in Prudential Provisions Cr) Unsecured 25% 50% NPA Provision 97 Doubtful Assets Secured 25% 50% n (Up to one year) Contingency provision 106 o Unsecured 100% 100% i s i Total 203 v o Doubtful Assets Secured 40% 100% r P (One to three years) Tax 51 A P Unsecured 100% 100% N After Tax Impact 152 Doubtful Assets (More than three years) Secured/Unsecured 100% 100% Contingency provision is more than Net NPA Loss Assets Secured/Unsecured 100% 100% CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Branch Distribution CASA Gold Loans % distribution 4% 9% 6% State Sep-21 Sep-22 9% 16% 5% KERALA 49% 43% TAMIL NADU 17% 19% 16% MAHARASHTRA 10% 10% Q2 Q2 1(1) ANDHRA 6% 9% FY FY 4(3) 1(1) KARNATAKA 7% 7% 23 23 OTHERS 11% 12% 36% 2(2) 23(20) 37% 4(4) 5(4) 62% Total Deposits Total Advances 9(7) 6(4) 2(1) 10% 4% 5% 1(1) 9% 13% 1(1) 60(51) 23% 9(7) No of Branches 17% Q2 Q2 Population Sep-21 Sep-22 3(3) 53(22) FY FY Metropolitan 112 123 30% 42(37) 23 23 Urban 110 120 115(120)Semi-urban 277 318 60% 264 Rural 42 47 29% (216) 3(2) Grand Total 541 608 Kerala Tamilnadu Maharashtra Karnataka Others Legend: Branches (ATM) CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Share Holding Pattern % of Share Holding No of Shares Category No of Shareholders % of Holding Held(in Mio) FIHM -promoter & Promoter Group 1 86.26 49.72% FIHM - promoter & Promoter SBI Mutual Fund 1 9.34 5.39% 31.74% Group Other Mutual Funds 8 2.70 1.56% SBI Mutual Funds Alternate Investment Funds 8 3.67 2.12% Q1 Other Mutual Funds Foreign Portfolio Investors 45 8.95 5.16% FY Fis/ banks/ Insurance Companies 1 2.49 1.43% 23 Alternate Investment Funds Shares held by CSB ESOS Trust 1 5.00 2.88% 2.88% Others 56777 55.07 31.74% 1.44% Foreign Portfolio Investors Total 56842 173.48 100.00% 5.16% 2.12% 49.72% Fis/ banks/ Insurance Companies 1.56% 5.38% Shares held by CSB ESOS Trust Others CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Solid CRAR & Adequate Liquidity – Our Strength Amt in Cr Capital Adequacy Ratio RWA to Total Assets 25.90% 25.46% 25.14% 20.12% 20.74% 44.75% 42.89% 18.76% 19.38% 24.35% 23.97% 23.63% 40.52% 40.74% 39.31% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CRAR Tier I Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Risk Weighted Assets 10482 10159 9966 10331 10489 Liquidity Coverage Ratio 1571 1571 1571 2094 2094 715 734 720 687 493 170% 146% 154% 147% 126% 8197 7854 7675 7550 7902 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Credit Risk Market Risk Operaional Risk CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Total Deposits (Amt in Cr) CASA Ratio Total Gross Advances (Amtin Cr) 22% 35.14% 34.57% 34.27% 10% 33.66% 18372 20987 20267 32.58% 17066 16742 19055 19056 20188 15610 15097 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 13794 13393 13145 12848 12469 Gross CD Ratio 87.54% 84.21% 82.93% 81.92% 6208 6587 6795 7122 7193 79.23% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CASA Term Deposits Total Advances CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Cost of Deposits (QoQ) Cost of Deposits (YoY) 5.29% 5.29% 5.26% 6.76% 6.88% 6.50% 5.41% 5.12% 5.18% 4.30% 5.07% Term Deposits 4.24% 5.86% 5.91% 4.18% 5.32% 4.21% 4.10% Total Deposits 4.39% 4.14% 2.79% 2.71% Savings Accounts 3.96% 3.90% 2.65% 2.65% 2.83% 2.62% 2.75% 2.53% H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Yield on Advances (QoQ) Yield on Advances (YoY) 11.38% 11.59% 11.19% 10.82% 11.01% 10.70% 10.81% 10.27% 10.62% 9.86% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Advance Mix (Amtin Cr) Q2 FY 22 Q2 FY 23 2.8% 3.1%1.4% 5460 Gold Loans 8036 47.2% 4.9% 1.7% 1.5% 6.2% 5.6% 2326 SME Loans 2299 1.2% 1.2% 1.0% Corporate Loans 3983 4278 7.4% 5.8% 7.4% 36.2% 1112 Retail Loans 1068 4.0% 43.7% 177 Two Wheeler Loans 178 0.4% 934 Assignment Loans 1031 10.4% 419 LCBD & TReDS 274 34.7% 26.4% 474 Agri Loans 892 88.2% 23.3% 212 MFI Loans 318 49.9% 15.4% 12.5% Retail Loans includes 41% LAP,20% HL,6% EL,3% VL&30% others 82% of Assignments loans are gold DA,Retail Loans includes 42% LAP,17% HL,5% EL,3% VL&33% others CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Gold Loan Our DNA – (Amtin Cr) Tonnage Portfolio Movements Portfolio Quality 21.40 34% 47% YoY 13% QoQ 16.00 Yield LTV 8036 7107 6570 11.27% 81% 6131 5826 5644 5627 5460 Q2 FY22 Q2 FY23 4949 No of Accounts (in Lakhs) 6.41 38% 0.38% 21.40 T 4.63 NPA % Tonnage Q2 FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY23Q2 FY23 Q2 FY22 Q2 FY23 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Investments (Amtin Cr) 6965 7142 7231 5966 5877 HTM 73.10% AFS 26.48% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 HFT 0.42% Yield on Investments QoQ YoY 6.04% 6.01% 5.79% 6.65% 5.72% 6.52% 6.37% 5.54% 6.24% 5.93% M Duration HFT AFS HTM Total Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 7.40 0.98 5.80 4.63 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Sector Wise Exposure Industries % to Gross advances Sector Wise Exposure Textiles 4.67% Construction 3.79% 15% Infrastructure 3.62% Services % to Gross advances Food Processing 3.09% 31% NBFCs 7.49% Chemicals and Chemical Products (Dyes, HFC 4.69% Paints, etc 0.86% Wholesale & Retail Trade 3.29% All Engineering 0.69% Tourism, Hotel and Restaurants 2.07% 41% Vehicles, Vehicle Parts and Transport Real Estate Activities 1.26% Equipments 0.50% 13% Transport Operators 0.62% Paper and Paper Products 0.23% MFIs 0.48% Gems and Jewellery 0.17% Computer and Related Activities 0.36% Rubber, Plastic and their Products 0.13% Other Services 10.38% Basic Metal and Metal Products 0.28% Wood and Wood Products 0.12% Agriculture and Allied Activities Beverages (excluding Tea & Coffee) and Industry Tobacco 0.09% Cement and Cement Products 0.04% Services Leather and Leather products 0.17% Retail & Others Mining and Quarrying 0.04% Other Industries 0.19% CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Rating wise Exposure External Rating of Corporate Accounts (>Rs 25Cr) Internal Rating of SME accounts 0%3% 8% 1% 9% 0%4% 8% 11% 2% 99% of Corporate advances 33% 88% of SME advances are 19% are externally rated of 35% rated as Low/Medium risk which 70% are having A & Q1 FY23 categories 20% Q1 FY23 aboverating. 53% 68% 56% 70% Q2 FY23 Q2 FY23 Low Medium High Very High Others A & Above BBB <BBB Others CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Profit & Loss Account - Q2 FY 23 Amt in Cr Q1 FY23 Q2 FY23 QoQ Q2 FY22 YoY Q1 FY23 Q2 FY23 QoQ Q2 FY22 YoY Interest Income 535.9 555.2 4% 495.9 12% Operating Profit 154.7 157.4 2% 149.4 5% Provision for NPA -1.2 -8.7 -18.2 Interest Expense 225.2 230.2 2% 217.5 6% Other Provisions 2.9 5.0 72% 9.1 -45% Net Interest Income 310.7 325.0 5% 278.4 17% Total Provisions 1.7 -3.7 -9.1 Treasury Profit 9.9 -21.4 -10.2 Profit Before Tax 153.0 161.1 5% 158.4 2% Exchange Profit 2.8 1.8 -36% 1.6 14% Tax 38.5 40.5 5% 39.9 2% Processing Fees 7.7 22.0 186% 16.8 31% Profit/Loss (-) After Tax 114.5 120.5 5% 118.6 2% Commission Income 17.9 25.4 42% 15.9 60%  ProfitAfterTaxisatRs121CrinQ2FY23asagainstRs114CrinQ1FY22(upby5%) PSLC Income - - 20.9  OperatingProfitofthe bank is Rs 157 CrforQ2 FY 23whereas it was Rs 149 Crforthe same period lastFY(upby5%). Other Income 16.5 17.2 4% 14.8 16%  NetInterestIncome(NII)earnedforthesecondquarterisRs325CrwithaY-o-Yincreaseof17%(Rs Total Non Interest Income 54.9 44.9 -18% 59.8 -25% 278.4CrforQ2FY22).QoQthereisanincreaseofRs15crore.  Treasuryprofitsimpactedduetohardeningofyieldsand SRprovisionofRs17.4Cr Total Net Operating Income 365.5 369.9 1% 338.2 9%  Due to draining of opportunities in the PSLC market, no PSLC income could be booked in Q2 FY 23 Staff Cost 122.2 129.0 6% 119.2 8% whereasanincomeofRs20.9CrwasbookedinQ2FY22  ProcessingFeehasgoneupby31%YoY&185%QoQ Other Opex 88.6 83.5 -6% 69.6 20%  ImprovedCommissionincome-upby60%YoY&42%QoQ Total Opex 210.8 212.5 1% 188.8 13%  IncreasedstaffcountandnewbranchopeningsresultedinincreaseinOpex Operating Profit 154.7 157.4 2% 149.4 5% CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Profit & Loss Account - H1 FY 23 Amt in Cr H1 FY22 H1 FY23 YoY YoY% H1 FY22 H1 FY23 YoY YoY% Interest Income 991.1 1091.1 100.0 10% Operating Profit 324.1 312.1 -12.0 -4% Provision for NPA 79.0 -9.9 -88.9 Interest Expense 445.0 455.5 10.5 2% Other Provisions 5.1 7.8 2.7 53% Net Interest Income 546.1 635.7 89.6 16% Total Provisions 84.1 -2.1 -86.2 Treasury Profit 11.2 -11.4 -22.6 Profit Before Tax 240.0 314.1 74.1 31% Exchange Profit 4.7 4.6 -0.1 -2% Tax 60.4 79.1 18.7 31% Processing Fees 25.9 29.6 3.7 14% Profit/Loss (-) After Tax 179.6 235.1 55.5 31% Commission Income 27.0 43.3 16.3 60% PSLC Income 33.4 - Other Income 28.8 33.7 4.9 17%  PATupby31%atRs235Crs  NIIupby16% Total Non Interest Income 131.0 99.8 -31.2 -24%  NonInterestincomeimpactedbyadditionalSRprovision(Rs17Cr)&lacklustrePSLCmarket(impact Total Net Operating Income 677.2 735.4 58.2 9% ofRs33Cr)  Commissionincomeupby60% Staff Cost 216.4 251.2 34.8 16%  Increaseinnumberofbranches(by67no)andStaffcount(443)resultedin20%increaseinOpex Other Opex 136.7 172.2 35.5 26%  NPA provisionreversalofRs 10Crasagainstthe additionalprovisionofRs79 CrinH1FY 22 dueto stableassetquality Total Opex 353.1 423.4 70.3 20% Operating Profit 324.1 312.1 -12.0 -4% CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Balance Sheet Q2 FY 23 – Amt in Cr 30-09-2021 30-09-2022 YoY (%) 30-06-2022 QoQ (%) Liabilities Capital 173.5 173.5 0% 173.5 0% Reserves & Surplus 2189.9 2715.2 24% 2,593.2 5% Deposits 19055.5 20986.6 10% 20,266.8 4% Of Which CASA 6208.0 7192.8 16% 7,121.9 1% Borrowings 1476.0 1351.8 -8% 1,985.0 -32% Other Liabilities & Provisions 529.6 516.4 -2% 476.2 8% Total 23424.6 25743.6 10% 25,494.8 1% Assets Cash & Balance with RBI 2208.0 1479.6 -33% 1,112.7 33% Balance with Banks Money at 217.3 151.0 36.5 call & Short Notice -31% 314% Investments 5836.4 5734.4 -2% 7,105.4 -19% Advances 14070.1 17468.3 24% 16,142.1 8% Fixed Assets 278.2 289.1 4% 286.8 1% Other Assets 814.6 621.2 -24% 811.3 -23% Total 23424.6 25743.6 10% 25,494.8 1% CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Asset Quality Amt in Cr Restructured (Standard) QoQmovement 0.71% 0.66% Gross NPA: Movement Q2 FY22 Q3FY22 Q4 FY22 Q1 FY23 Q2 FY23 0.53% 0.50% 0.41% (3 months) (3 months) (3 months) (3 months) (3months) 106 94 85 82 Opening Balance of Gross NPA 686 587 389 290 293 73 Additions 205 81 38 37 42 Sub-total(A) 892 668 427 327 335 Less:- Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 (i) Upgradations 96 72 36 15 13 Restructured (Standard) % to gross advances (ii) Recoveries 190 206 98 17 20 (iii) Technical/ Prudential Write-offs 19 - - - - Security Receipts (iv) Write-offs 1 1 3 2 11 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY23 Sub-total(B) 305 279 137 34 44 Book Value 177 171 161 155 152 Closingbalanceof GrossNPA (A – B) 587 389 290 293 291 Net Book Value 57 50 33 33 13 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Profitability Ratios Net Interest Income NIM Non interest Income to Total Income (in Cr) QoQ QoQ QoQ 5.60% 325 303 304 311 5.41% 5.42% 10.76% 10.91% 9.00% 9.28% 5.22% 7.49% 278 5.17% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 636 YoY YoY YoY 546 11.67% 10.79% 415 5.13% 5.38% 8.38% 4.27% 7.50% 280 3.08% H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY20 H1 FY21 H1 FY22 H1 FY23 *NIM = NII/Avginterest earning assets CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Profitability Ratios Opex to Average assets Credit Cost RoA QoQ QoQ QoQ 2.42% 3.63% -0.03% 2.02% 2.11% 1.87% 1.75% 3.39% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 3.32% 3.24% 3.21% -1.00% -0.21% -0.54% -1.44% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 YoY YoY YoY 2.88% 3.00% 3.27% 2.74% 2.62% 1.39% 1.41% 1.53% 1.81% 1.13% 0.49% 0.17% 0.13% -0.12% H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 -0.56% CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Asset Quality Ratios Amt in Cr QoQ 4.11% QoQ 2.63% 1.36% 2.62% 0.68% 0.60% 0.57% 1.81% 1.79% 1.65% 370 587 200 389 290 293 291 107 97 99 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 4.32% 2.63% 8.26% 1.96% 399 1.30% YoY 370 0.57% YoY 4.11% 796 2.86% 3.04% 222 587 1.65% 164 387 326 291 99 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Asset Quality Ratios Amt in Cr Slippage Ratio Provision Coverage Ratio QoQ QoQ 6.15% 82.95% 89.65% 90.51% 90.14% 73.48% 2.37% 1.05% 0.94% 1.04% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Recovery Rate YoY QoQ 79.45% 84.24% 90.14% 73.48% 64.32% 41.52% 47.41% 34.45% 11.03% 11.20% H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Share Holders Return & Risk Ratios EPS Net NPA to Networth (in Rs) QoQ QoQ 38.08 30.13 27.32 26.80 27.80 17.41% 8.77% 4.43% 3.48% 3.72% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 YoY YoY 84.12% 27.10 20.70 14.12 7.72 17.41% 10.42% 9.26% -11.7 3.72% H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Share Holders Return & Risk Ratios RoE Book Value per Share (in Rs) QoQ QoQ 26.85% 151 158 22.94% 22.21% 137 144 18.57% 18.44% 127 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 YoY YoY 158 17.84% 18.49% 14.48% 127 111 4.27% 105 86 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 -18.74% H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Efficiency Ratios Business per Employee Profit per Employee (In Cr) (in Lakhs) QoQ 7.92 7.82 QoQ 12.24 11.13 9.74 9.59 7.38 9.04 7.16 7.01 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 YoY 8.82 YoY 7.38 8.03 8.38 6.68 7.51 7.38 7.01 2.41 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 -3.09 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Efficiency Ratios Staff Cost to Total Income Cost to Income Ratio QoQ QoQ 24.57% 61.34% 58.49% 57.67% 57.46% 21.45% 21.50% 21.06% 20.69% 55.83% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 32.91% 104.01% YoY YoY 21.24% 21.09% 76.82% 18.97% 19.28% 54.45% 52.15% 57.57% H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Digital Touch Points 4.07 lacs+ Net 507 ATM 1,468 Installations 6.72 lacs + Debit Cards Banking users Network 5,332+ QR 87,532+ ePassbook 78,660+Prepaid 1.34 lac+ UPI Installations Downloads Cards Downloads 3.91 lacs+ Mobile Banking Users CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration Channel Transactions Digital vs Branch No. of txns 404.36 H1 FY22 H1 FY23 334.20 (In lakh) (In lakh) Mobile Banking 5.89 9.07 Internet Banking 7.91 8.58 216.00 162.03 Debit Cards 40.19 52.51 UPI 162.03 334.20 52.51 Branch txns 40.19 44.13 48.91 44.13 48.91 44.13 48.91 5.89 9.07 7.91 8.58 Total Channel Mobile Internet Debit Cards UPI Branch txns No. of txns H1 FY22 No. of txns H1 FY23 Transactions 216.00 404.36 Banking Banking (In lakh) (In lakh) H1 FY22 (In lakh) H1 FY23 (In lakh) Branch txns Channel Txns % of channel txns 83.04% 89.21% CSB Bank Investor Presentation Q2 FY23 Company Business Digital Earnings Strategy Overview Overview Penetration SBS 2030 CSB Bank Investor Presentation Q2 FY23 Thank You… CSB Bank Investor Presentation Q1 FY23 Disclaimer This presentation has been prepared by CSB Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informationalneedsofanyparticularperson.All informationcontainedhasbeen preparedsolely bytheBank. 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The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all materialinformationconcerningtheBank. This presentation is not intended to be an offer document or a prospectus under the Companies Act, 2013 and Rules made thereafter , as amended, the Securities and Exchange BoardofIndia(IssueofCapital andDisclosure Requirements)Regulations, 2009,asamendedor anyotherapplicable law. Figures for the previous period / year have been regrouped wherever necessary to conform to the current period’s / year’s presentation. Total in some columns / rows may not agreeduetoroundingoff. Note:All financial numbersin thepresentationarefromAudited Financials or LimitedReviewed financials orbasedonManagementestimates. CSB Bank Investor Presentation Q2 FY23