CSBBANK

SEC/26/2021 January 19, 2021 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 Investors/Analyst – Unaudited Financial Results for the quarter and nine months ended December 31, 2020. ------------------------------------------------------------------------------------------------------------------------------------- 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/25/2021 dated January 19, 2020, please find enclosed a copy of press release and the Investor Presentation on financial and business performance of the Bank for the quarter and nine months ended December 31, 2020. The intimation shall also be made a(cid:448)ailable on the Bank’s (cid:449)ebsite 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 | Web: www.csb.co.in | Email: board@csb.co.in | CIN: L65191KL1920PLC000175 PRESS RELEASE Q3FY21 Results – CSB Bank The Board of Directors of CSB Bank took on record the financial results for the quarter ended 31.12.2020 (Q3 FY 2021) which were subject to limited review in their meeting dated 19.01.2021 Highlights a) Profit After Tax for the nine months ended 31.12.2020 is at Rs 175.5. Cr with an RoA (annualized) of 1.07% despite having made healthy provisions in the post moratorium scenario. Q3 PAT is at Rs 53.1 Cr as against Rs 28.1 Cr in Q3 FY 20 and Rs 68.9 Cr in Q2 FY 21 with an increase of 89% over Q3 FY 20. b) The Operating Profit of the bank is Rs 484.3 Cr for nine months ended 31.12.2020 as against Rs 173.6 Cr for the same period last FY with a YOY growth of 179%. Q3 FY21 operating profit is at Rs 182.4 Cr as against Rs 70.0 Cr for Q3 FY20 (up by 160.5%) and Q2 FY21 figure of Rs 172.8Cr (5.5%). c) Net Interest Income (NII) for nine months ended FY21 stood at Rs 665.7 Cr posting a YoY increase of 53.1%. In Q3 FY21, the NII stood at Rs 251.2 Cr as against Rs 155.2 Cr in Q3 FY20 with an absolute growth of Rs 96 Cr or 61.8 % .On a QoQ basis NII is up by 9.6%. The improvements in quarterly ratios that supported higher NIM in Q3 FY21 vis a vis Q3 FY 20 are: ฀ Yield on Advances – Up from 10.72% to 10.98% (10.94% -Q2 FY 21)) ฀ Cost of Deposits - Down from 5.91% to 4.91% (5.18% -Q2 FY 21) ฀ NIM – Up from 3.92% to 5.17% (4.50% -Q2 FY 21) ฀ Yield on investments – Up from 6.33% to 7.00%( 6.74% -Q2 FY 21) d) Non-Interest Income for nine months ended FY21 stood at Rs 288.5 Cr growing YoY at 113.6%. For Q3 FY21 the figure is Rs 116.6 Cr as against Rs 50.6 Cr for the same period as compared to last year - an increase of 130.3% (Rs 97.6 Cr in Q2 FY21) with the backing of increased treasury profits, processing fee and PSLC income. e) Cost Income Ratio: The ratio that was 69.53% for nine months ended FY20 has come down to 49.25% for nine months ended FY21. f) Asset Quality & Provisioning ฀ Gross NPA decreased from Rs 387 Cr as on 30.09.2020 to Rs 235 Cr as on 31.12.2020. Gross NPA as percentage of advances is at 1.77% as on 31.12.2020 where as it was 3.04% & 3.54% respectively on 30.09.2020 & 31.03.2020 ฀ Net NPA decreased from 164 Cr as on 30.09.2020 to Rs 89.5 Cr as on 31.12.2020 – a decrease of 45%. Net NPA as percentage of advances decreased from 1.30% as on 30.09.2020 & 1.91% as on 31.03.2020 to 0.68% as on 31.12.2020 ฀ Provision Coverage improves to 91.0% as on 31.12.2020 from 84.2% as on 30.09.2020 and 80.0% as on 31.03.2020. Additionally we are holding a provision of Rs 154 Cr for the stressed assets including SMA, blocked accounts etc 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 g) Capital Adequacy Ratio improves from 19.69% as on 30.09.2020 to 21.02% as on 31.12.2020. Leverage ratio is at 7.7% as on 31.12.2020. h) Comfortable Liquidity Position. Liquidity Coverage Ratio at 200% which is well above the RBI requirement. i) Total Deposits grew by 16% YoY and CASA ratio stood at 30.4% as on December31, 2020 as against 28.6% as on December 31, 2019. j) Advances (Net) grew YoY at 22% mainly contributed by Gold Loan growth of 61% Performance Highlights: QoQ% 9M FY 9M FY (Rs Crore) Q3FY21 Q3FY20 Inc/Dec% Q2FY21 Inc/Dec% Growth 21 20 Interest Income 482.6 388.7 24.2% 470.0 2.7% 1375.2 1121.0 22.7% Interest Expense 231.4 233.4 -0.9% 240.7 -3.9% 709.5 686.2 3.4% Net Interest Income 251.2 155.2 61.8% 229.2 9.6% 665.7 434.7 53.1% Treasury Profits 47.7 4.0 1106.1% 32.4 47.4% 123.6 16.9 630.7% Other Income 68.9 46.7 47.6% 65.2 5.6% 164.9 118.1 39.6% Total Non-Interest Income 116.6 50.6 130.3% 97.6 19.5% 288.5 135.0 113.6% Net Operating Income 367.8 205.8 78.7% 326.8 12.5% 954.2 569.8 67.5% Staff Cost 127.8 84.2 51.8% 103.8 23.2% 317.6 252.3 25.9% Other Opex 57.6 51.7 11.6% 50.3 14.6% 152.3 143.9 5.9% Total Opex 185.4 135.8 36.5% 154.0 20.4% 469.9 396.2 18.6% Operating Profit 182.4 70.0 160.5% 172.8 5.5% 484.3 173.6 179.0% Standard Asst Provision 89.2 -1.0 - 20.5 335.1% 152.8 1.1 13790.9% Other Provisions 22.3 28.6 -22.0% 60.2 -63.0% 96.9 61.2 58.3% Provisions other than Tax 111.5 27.6 304.0% 80.7 38.2% 249.7 62.3 300.8% PBT 70.9 42.4 67.2% 92.1 -23.0% 234.5 111.3 110.7% Tax 17.8 14.3 24.5% 23.2 -23.3% 59.0 38.9 51.7% PAT 53.1 28.1 89.0% 68.9 -22.9% 175.5 72.4 142.4% Deposits 17753.0 15241.1 16.5% 17468.4 1.6% 17753.0 15241.1 16.5% Advances 13137.3 10808.1 21.6% 12537.6 4.8% 13137.3 10808.1 21.6% CASA 5393.0 4353.0 23.9% 5134.0 5.0% 5393.0 4353.0 23.9% Gold 5644.0 3513.0 60.7% 4949.0 14.0% 5644.0 3513.0 60.7% CASA% 30.4% 28.6% 29.4% 30.4% 28.6% 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 CEO Speak: Speaking about the performance Mr. C VR Rajendran, Managing Director & CEO said, “The recent revival of the economic activity is having a positive impact on the banking industry as a whole and I am happy that we are no exception to this. We could post a net profit of Rs 175 Crs for the 9 months ended 31.12.2020. In the context of the withdrawal of the moratorium benefits by the regulator, we decided to be prudent by holding provisions in excess of the regulatory provisions on the stressed assets. Apart from the core NII growth, improved trading income /provision reversals at treasury backed by the favourable yield movements, net income by way of PSLC sale etc supported us on the income side. The key ratios viz NIM, Cost Income Ratio, RoA, RoE, Gross NPA, Net NPA, PCR & CRAR continued to be strong. On the topline front, our deposits and advances could register a YOY growth of 16% and 22% respectively. The new retail vertical with complete product suite and revamped policies will be established shortly. The new SME leadership is also working on volume growth by way of improved sourcing strategy, leveraging of` the branch network and customized product delivery. We look forward to building a sustainable business model by focusing more on these two segments apart from the gold loan portfolio. We will also have a focus on building retail deposit base during the current quarter. While building volumes it will be our endeavor to have the right risk return matrix without compromising on the compliance standards.” About CSB Bank Limited: We are one of the oldest private sector banks in India & completed a century of existence this year . 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 as a full service new age private sector bank. We have a strong base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra. We offer a wide range of products and services to our overall customer base of 1.6 million, with particular focus on SME, retail, and NRI customers. We deliver our products and services through multiple channels, including 454 branches (excluding three service branches and three asset recovery branches) and 319 ATMs 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 ,AGM – Strategy & Planning Dept CSB Bank Limited Cell phone: + 91 7736036738 Email : msreelatha@csb.co.in Thrissur 19.01.2021 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 Growth Well Capitalised by Rs 167Cr (53%) YoY Organisation Improved Cost and Asset Momentum & Strong (12M Period) • 454 Branches & 319 Profitability Revenue Quality Liquidity ATMs Position • 9 Zonal Offices *Q3PATisatRs53.0crore * NII grows by 53% *Advance grew by 20% * Capital Adequacy * GNPA came down to • 1.6Mn happy customers YoYand 15%YTD YoYand10%QoQ Ratio improves to 1.77%asagainst 3.04% • Presence in 16 states & 21.02% as against on30.09.20&3.54%on *9MPATsoarstoRs175.5 19.69% as on 31.03.2020 4 UTs Cr with RoA (annualized) * NIM improves to *Deposits grewby16% 30.09.2020. of 1.07%. 5.17%(Q3FY21) YoYand 12%YTD * fro N m et 1 N . P 30 A % dec a r s eas o ed n • Total business of *TierI ratioof19.77% 30.09.2020 & 1.91% as Over Rs 31800 Cr *PBTgrowsby111%YoY * Non-Interest Income *CASA growth of 24% on 31.03.2020 to 0.68 increases by 114% YoY YoYand 17%YTD *LCRof200% %ason31.12.2020 • 5 bancassuance tie ups & 20% QoQ supported *PCR increases to by improved treasury *Operating Profit crosses with industry leaders. Rs 484 Cr and is higher gains & PSLC * Digital Penetration 91.03% from 84.24% in Q2 commission increasesto73% than the full year figure forFY20.Upby179%ona *Bank continues to YoYbasis provide accelerated provisionsinQ3FY21 CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Prudential Provisioning Policy Asset Classification RBI Norms Our Norms Secured 15% 25% Sub Standard Assets n Unsecured 25% 50% o i Doubtful Assets Secured 25% 50% s i v (Up to one year) Unsecured 100% 100% o r Secured (1st Year) 40% 100% P Doubtful Assets Prudential Provisions Amount A Secured (2nd Year) 40% 100% (in Cr) P (One to three years) N Unsecured 100% 100% NPA Provision 127 Doubtful Assets Additional Stdasset provision 143 (More than three years) Secured/Unsecured 100% 100% SR Provision 7 Loss Assets Secured/Unsecured 100% 100% Total 277 After Tax Impact 207 RBI Norms Accounting Treatment •0.25% to 1% based on the • Provided as per RBI Norms nature of advance • Additional provisioning buffer r e s n Provisions for StandardAssets created in view of the COVID ho t O i s scenario i v Appreciation of individual scripsnot o Depreciation can be netted r netted P Provisions for Security Receipts with appreciation of individual scrips in the same category CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Profitability Ratios Amt in Cr Operating Profit QoQ Net Profit QoQ 173 182 69 54 53 129 28 107 *27 70 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 -60 *Ex Tax effect Operating Profit YoY Net Profit YoY 176 484 72 36 155 174 59 51 -47 9M FY17 9M FY18 9M FY19 9M FY20 9M FY21 -60 CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Branch Distribution CASA Gold Loans 4% 9% State % distribution 9% 8% 11% 8% KERALA 61% 16% TAMIL NADU 14% MAHARASHTRA 10% Q3 Q3 1(1) 3(2) KARNATAKA 4% FY FY OTHERS 11% 21 21 2(2) 11(4) 40% 32% 4(4) 4(4) 64% 6(5) 3(1) 2(1) Total Deposits Total Advances 1(1) 7% 1(1) 9% 42 (30) 7(3) 7% 65% 22% Q3 Q3 3(2) 8(3) Population No of Branches 4% FY FY 19(11) Metropolitan 82 21 21 34% Urban 92 10% 69(64) 265 Semi-urban 240 (174) Rural 40 28% 1(1) 15% Grand Total 454 Legend: Branches (ATM) Kerala Tamilnadu Maharashtra Karnataka Others CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Share Holding Pattern % of Share Holding Category No of Shareholders No of Shares Held(in Mio) % of Holding FIHM-Promoter & Promoter Group 2 86.27 49.74% Mutual Funds 6 12.14 7.00% 34.21% Alternate Investment Funds 1 1.79 1.03% Foreign Portfolio Investors 8 8.89 5.12% Q3 49.74% FIs / Banks /Insurance Companies 2 0.02 0.01% FY 21 Shares held by Empolyee Trusts 1 5.00 2.88% Others 49660 59.34 34.21% TOTAL 49680 173.45 100.00% 2.88% 0.01% 5.12% 1.03% 7.00% FIHM-Promoter & Promoter Group Mutual Funds Alternate Investment Funds Foreign Portfolio Investors FIs / Banks /Insurance Companies Shares held by Empolyee Trusts Others CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Solid CRAR & Adequate Liquidity – Our Strength Amt in Cr Capital Adequacy Ratio RWA to Total Assets 23.00% 22.46% 21.02% 46.74% 18.93% 19.69% 22.34% 21.79% 41.83% 41.98% 41.10% 19.77% 40.20% 17.93% 18.44% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Risk Weighted Assets Liquidity Coverage Ratio 8 8 7 9 1 5 1 8 1 6 1 5 5 2 1 2 1 9 1 9 5 1 1 7 1 0 1 5 5 1 9 1 1 1 6 5 257% 245% 232% 234% 200% 5543 5911 6175 6472 6610 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Credit Risk Market Risk Operaional Risk CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Total Deposits (Amt in Cr) Cost of Deposits CASA Ratio Amt in Cr 30.38% 29.17% 29.23% 29.39% 16% 6.88% 6.91% 28.56% 17468 17753 6.64% 16338 6.39% 15791 0 15241 4 3 6 3 6.03% 2 3 2 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 4 6 2 1 8 8 8 1 5 1 1 5.91% 5.91% 5.86% 8 1 1 0 1 5.48% NR Deposits 1 5.18% 4.91% 25% 25% 24% 24% 24% 3.92% 3.77% 4,181 3.06% 10% 4,132 2.62% 2.54% 3,982 3 5 3 4 7 0 6 4 6 7 7 4 4 3 1 5 3 9 3 5 3,812 3,914 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Savings Accounts CASA Term Deposits TermDeposits TotalDeposits Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 NR deposits NR to total deposits CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Total Gross Advances + Non SLR Bonds (Amtin Cr) Gross CD Ratio Yield on Advances 10.94% 10.98% 10.86% 10.72% 10.74% 15357 29% 14698 79.17% 1302 77.52% 13291 1,287 12537 76.63% 76.78% 11863 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 1,193 297 183 74.05% Yield on Non SLR Bonds 11.12% 0 8 6 ,1 1 0 4 2 ,2 1 8 9 0 ,2 1 1 1 4 ,3 1 5 5 0 4 1 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 10.22% 10.61% 10.14% 10.14% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Combined Yield Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 10.87% 10.86% 10.91% 10.71% 10.73% Total Advances Total Non SLR Bonds Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Advance Mix (Amtin Cr) Q3 FY 20 Q3 FY 21 3523 Gold Loans 5644 60.2% 0.8% 2006 SME Loans 2131 2.7% 2.6% 4.9% 6.2% 5.1% 5.3% 1.0% 0.5% 285 MSME General Loans 236 17.2% 30.2% 8.4% 40.2% MSME New Loans 0 41 11.3% Corporate Loans 3201 3208 0.2% 1322 Retail Loans 1187 10.2% 61 Two Wheeler Loans 141 133.4% 620 Assignment Loans 713 15.0% 22.8% 27.4% 574 LCBD & TReDS 384 32.9% 17.2% 381.9% 88 Agri & MFI Loans 370 320.1% 0.3% 1.7% 15.2% 2.4% CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Gold Loan Our DNA – (Amtin Cr) Portfolio Movements Portfolio Quality Tonnage 16.26 7% Weighted Yield Overall LTV 61% YoY 14% QoQ 5644 15.15 4949 12.62% 75% 3799 3849 3513 3367 Q4 FY20 Q3 FY21 3004 No of Accounts (in Lakhs) 4.45 0.28% 16.26 T 9% 4.08 Q1 FY20Q2 FY20Q3 FY20Q4 FY20Q1 FY21Q2 FY21Q3 FY21 NPA % Tonnage Q4 FY20 Q3 FY21 CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Sector Wise Exposure Sector Wise Exposure Industries % to Gross advances Services Textiles 3.36% Retail & 33% Food Processing 2.36% Others Services % to Gross advances Infrastructure 1.81% 33% NBFCs 10.93% Construction 1.24% Wholesale & Retail Trade 4.85% All Engineering 0.63% Tourism, Hotel and Restaurants 2.66% Beverages (excluding Tea & Commercial Real Estate 2.24% Coffee) and Tobacco 0.37% Transport Operators 0.53% Chemicals and Chemical Products Professional Services 0.41% (Dyes, Paints, etc 0.36% Computer Software 0.40% Basic Metal and Metal Products 0.33% Other Services 10.53% Paper and Paper Products 0.30% Wood and Wood Products 0.16% Rubber, Plastic and their Products 0.15% Industry Gems and Jewellery 0.07% 12% Agriculture Mining and Quarrying 0.07% and Allied Others 0.79% Activities 22% CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Investments (Amtin Cr) Total Investments 7800 6820 5911 5461 4664 HTM 65.82% AFS 33.84% HFT 0.34% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Yield on Investments 7.00 6.74 6.64 M Duration 6.33 6.28 HFT AFS HTM Total 7.10% 2.85% 5.62% 4.86% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Rating wise Exposure External Rating of Corporate Accounts (>Rs 25Cr) Internal Rating of SME accounts 5% 9% 1% 11% 5% 10% 28% 8% 1% 11% 13% 91% of Corporate advances 26% 83% of SME advances are are externally rated of rated as Low/Medium risk Q2 FY21 which 55% are having A & Q2 FY21 categories 58% 55% aboverating. 21% 26% 57% Q3 FY21 55% Q3 FY21 A & Above BBB <BBB Others Low Medium High Very High Others CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Profit & Loss Account - Q3 FY 21 Amt in Cr Q3FY20 Q2FY21 Q3FY21 YoY QoQ Q3FY20 Q2FY21 Q3FY21 YoY QoQ Operating Profit 70.0 172.8 182.4 160.6% 5.6% Interest Income 388.7 470.0 482.6 24.2% 2.7% Provision for NPA 35.3 20.8 56.2 59.2% 170.2% Interest Expense 233.4 240.7 231.4 -0.9% -3.9% Provision for Dep on Inv -6.1 39.1 -34.2 -460.7% - Net Interest Income 155.2 229.2 251.2 61.9% 9.6% Provision for std advances -1.0 20.5 89.2 - 335.1% Treasury Profit 4.0 32.4 47.7 1092.5% 47.2% Other Provisions -0.6 0.4 0.2 - -50.0% Total Provisions 27.6 80.7 111.5 304.0% 38.2% Commission Income 7.7 10.7 11.7 51.9% 9.3% Profit Before Tax 42.4 92.1 70.9 67.2% -23.0% Processing Fees 8.6 15.7 14.1 64.0% -10.2% Tax 14.3 23.2 17.8 24.5% -23.3% Bad debts recovered 17.9 14.7 19.4 8.4% 32.0% Profit/Loss (-) After Tax 28.1 68.9 53.0 88.6% -23.1% Other Income 12.5 24.2 23.7 89.6% -2.1% Total Non Interest Income 50.6 97.6 116.6 130.4% 19.5% NetInterestIncomegrowsby62%YoY&10%QoQ Non-Interest Income increases by 130% YoY & 20% QoQ - improved treasury gains & PSLC Total Net Operating Income 205.8 326.8 367.8 78.7% 12.5% commission Staff Cost 84.2 103.8 127.8 51.8% 23.1% Operatingprofitupby161%YoY Healthyprovisioningbuffer -IncrementalstandardassetprovisionisRs89crinQ3FY21 Other Opex 51.7 50.3 57.6 11.4% 14.5% PBTgrowsby67%YoY Total Opex 135.8 154.0 185.4 36.5% 20.4% PATgrowsby89%YoY Operating Profit/Loss 70.0 172.8 182.4 160.6% 5.6% CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Profit & Loss Account - 9M FY 21 Amt in Cr 9M FY 20 9M FY 21 YoY YoY% 9M FY 20 9M FY 21 YoY YoY% Interest Income 1,121.0 1,375.2 254.2 22.7% Operating Profit 173.6 484.3 310.7 179.0% Provision for NPA 65.1 90.7 25.6 39.3% Interest Expense 686.2 709.5 23.3 3.4% Provision for Dep on Inv -3.7 5.4 9.1 - Net Interest Income 434.7 665.7 231.0 53.1% Provision for std advances 1.1 152.8 151.7 13790.9% Treasury Profit 16.9 123.6 106.7 631.4% Other Provisions -0.3 0.8 1.1 - Commission Income 21.4 28.0 6.6 30.8% Total Provisions 62.3 249.7 187.4 300.8% Processing Fees 19.4 36.3 16.9 87.1% Profit/Loss(-) Before Tax 111.3 234.5 123.2 110.7% Tax 38.9 59.0 20.1 51.7% Bad Debts recovered 40.5 43.7 3.2 7.9% Profit/Loss (-) After Tax 72.4 175.5 103.1 142.4% Other Income 36.8 56.9 20.1 54.6% Total Non Interest Income 135.0 288.5 153.5 113.7% NetInterestIncomegrowsby23% Total Net Operating Income 569.8 954.2 384.4 67.5% Non-InterestIncomeincreasesby114%-improvedtreasurygains&PSLCcommission Staff Cost 252.3 317.6 65.3 25.9% Operatingprofitupby179% StandardassetprovisionincludesCovidrelatedprovisionamountingtoRs145Cr Other Opex 143.9 152.3 8.4 5.8% PBTgrowsby111% PATgrowsby142% Total Opex 396.2 469.9 73.7 18.6% Operating Profit 173.6 484.3 310.7 179.0% CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Balance Sheet Q3 FY 21 – Amt in Cr 31.12.2019 31.12.2020 YoY (%) 30.09.2020 QoQ (%) Liabilities Capital 173.5 173.5 0.0% 173.5 0.0% ESOP Outstanding - 0.4 - - - Reserves & Surplus 1846.8 1962.7 6.3% 1,909.0 2.8% Deposits 15241.1 17753.0 16.5% 17,468.4 1.6% Of Which CASA 4353.2 5393.0 23.9% 5,134.1 5.0% Borrowings 100.0 951.0 851.0% 2,181.8 -56.4% Other Liabilities & Provisions 420.6 656.6 56.1% 382.3 71.7% Total 17782.0 21497.1 20.9% 22,115.0 -2.8% Assets Cash & Balance with RBI 693.9 652.9 -5.9% 636.2 2.6% Balance with Banks Money at 675.6% call & Short Notice 259.3 670.9 158.7% 86.5 Investments 4,663.8 5,804.7 24.5% 7,659.4 -24.2% Advances 10,808.1 13,137.3 21.6% 12,537.6 4.8% Fixed Assets 220.7 232.5 5.3% 229.3 1.4% Other Assets 1,136.2 998.8 -12.1% 966.0 3.4% Total 17,782.0 21,497.1 20.9% 22,115.0 -2.8% CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Asset Quality Amt in Cr QoQmovement Q3FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Gross NPA: Movement (3 months) (3 months (3 months) (3 months) (3 months) OpeningBalanceofGross NPA 326 353 409 401 387 Additions 53 83 6 4 - Sub-total(A) 379 436 415 405 388 Less:- (i)Upgradations 9 7 6 2 3 (ii)Recoveries(excludingrecoveriesmadefromupgradedaccounts) 16 17 7 15 15 (iii)Technical/PrudentialWrite-offs - - - - 134 (iv)Write-offsotherthanthoseunder(iii)above 1 2 0 1 1 Sub-total(B) 26 26 14 17 153 ClosingbalanceofGrossNPA(A–B) 353 409 401 387 235 CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Profitability Ratios Net Interest Income NIM Non interest Income to Total Income (in Cr) (Annualised) 5.17% 229 251 3.92% 3.81% 4.06% 4.50% 18.20% 17.20% 19.46% 14.90% 185 155 158 11.50% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 *NIM = NII/Avginterest earning assets Opex to Average assets (Annualised) Credit Cost (Annualised) RoA (Annualised) 1.22% 3.41% 2.04% 1.03% 0.96% 2.98% 1.73% 2.83% 2.74% 0.60% 2.49% 1.28% *0.54% 0.70% 0.48% *0.60% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 * with same provisioning policy as per Q2FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 -1.24% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 *Ex tax effect CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Asset Quality Ratios Amt in Cr 3.22% 3.54% 3.51% 1.98% 1.91% 3.04% 1.74% 1.30% 214 217 409 401 387 1.77% 195 0.68% 353 164 235 89 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Provision Coverage Ratio Slippage Ratio Recovery Rate 91.03% 5.00% 4.90% 4.97% 4.91% 3.74% 3.92% 84.24% 81.73% 80.31% 80.02% 1.76% 1.80% 0.03% 0.00% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Share Holders Return & Risk Ratios EPS Net NPA to Networth (Annualised) (in Rs) 15.88 12.35 12.24 13.36% 13.49% 11.60% 6.52 9.26% *6.06 4.89% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 -13.76 *Ex tax effect Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 RoE Book Value per Share (Annualised) (in Rs) 14.40% 11.80% 12.37% 111 114 107 107 6.13% 104 *5.74% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 -13.02% *Ex tax effect CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Efficiency Ratios Business per Employee Profit per Employee (Annualised) (In Cr) (in Lakhs) 7.48 8.55 8.62 8.52 6.42 5.34 8.38 3.51 *3.30 7.96 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 -7.49 *Ex tax effect Staff Cost to Total Income Cost to Income Ratio 65.99% 21.33% 19.16% 16.60% 17.31% 18.28% 56.17% 50.26% 47.13% 50.42% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Covid Provisions Amt in Cr • Supreme Court on 3rd September 2020, has directed that accounts which are standard as on 31.08.2020 [date of Balance Provision Held moratorium exit] should not be classified as NPA till Accounts which are in standard asset various petitions before the court seeking relief in the category due to SC order 210.62 51.39 wake of Covid-19 are disposed off. Other standard stressed accounts 381.48 93.48 • Accordingly, the bank has discontinued the classification Total 144.87 of such accounts as NPA. Provision held as on 30.09.2020 * 59.77 Additional Provision as on 31.12.2020 85.11 • The accounts which are in standard category due to SC order amounts to Rs 210.62Cr (Gold loans 62% + other loans 38%). • Bank is holding additional provisions forthese accounts. • Collection vs demand forthe month of December 2020 stoodat 95% CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Digital Touch Points 2.9 lacs+ Net 319 ATM 1,755 Installations 5.80 lacs + Debit Cards Banking users Network 2,014+ QR 62,776+ ePassbook 78,464+Prepaid 1.23 lac+ UPI Installations Downloads Cards Downloads 2.58 lacs+ Mobile Banking Users CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Channel Transactions Digital vs Branch No. of txns 9M FY 20 9M FY 21 126.9 201.7 (In lakh) (In lakh) Mobile Banking 5 7 88.7 130.0 Internet Banking 10 11 73.4 66.1 57.7 88.7 Debit Cards 66 58 49.6 73.4 UPI 50 127 9.610.6 Branch txns 89 73 4.8 6.5 Total Channel Mobile Internet Debit Cards UPI Branch txns ADC Txns Branch Txns 130 202 Transactions Banking Banking No. of txns FY 19 (9 M) (In lakh) No. of txns FY 19 (9 M) (In lakh) No. of txns FY 20 (9 M) (In lakh) No. of txns FY 20 (9 M) (In lakh) % of channel txns 59.45% 73.33% CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration CSB Mobile+ App - Way to Go Digital Upcoming Digital Projects Mobile Banking signups 2,58,656 Loyalty Rewards CSB E-Tax Filing program 2,00,355 for customers 1,43,862 Tap & Pay Cards Chatbotin Mobile App 87,218 (Contactless) 43,311 FASTag /National BBPS in Net/Mobile Electronic FY 17 FY 18 FY 19 FY 20 9M FY 21 Banking Toll Collections • Full fledged application ranging from fund Transfers Up gradation of CSB Mobile+ ,Recharges, Scan & Pay payments to UPI with Collect payments • (cid:858)‘efer & Win(cid:859) attra(cid:272)tive (cid:272)ash(cid:271)a(cid:272)ks • Best UI & UX Design CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration We aim to - deliver long term value for the shareholders, - grow with the aspirations of our customers, - provide employees with a meritocratic work environment, - meet the regulatory expectations. Through -expanding our footprints across India especially South and Western India, - extending into new clientele base in retail and MSME - reorganising into business verticals with clearly defined roles and responsibilities, - incentivising performance, - maintaining a granular asset portfolio with reduced focus on corporate credit, - competing on non price value propositions, - maintaining robust capital , funding and liquidity base, -strong balance sheet with strong controls. CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration Continue to grow existing asset business  Dedicated SME/MSME team to drive further penetration  Separate vertical for agriculture based business  Revamped policies, products, systems and processes to foster growth Accelerate transformation as New Age Private Bank Continue to leverage strong deposits franchise  Technology initiatives to enhance customer experience  Continue to increase CASA to support advances growth-Acquire, Retain and Grow  Expand products suite, services and customer interface  Increased focus on NRI clients  Introduction of Score Cards as part of PMS  Performance based Incentives NEW AGE Focus on NPA recovery and improve asset quality PRIVATE Expand distribution infrastructure  Separate team for retail, SME, and corporate recovery Sector  Increase presence beyond home state  Dedicated asset recovery branches for monitoring NPA of  Plan to open 100 plus branches in FY 21 INR 1 Mn and above BANK Maximizing non-interest income Strengthening risk management  Focus on distributing third-party investment products  Introduction of advanced risk management tools  Foray into sale of forex, derivatives, and trade products  Enhance existing credit risk management systems Invest in technology  Trading of PSL certificates  EWS  LMS  CRM CSB Bank Investor Presentation Q3 FY21 Company Business Digital Earnings Strategy Overview Overview Penetration •Verticalisation •PMS •Rewards & Recognition •Upskilling •Process Simplification CSB Bank Investor Presentation Q3 FY21 Thank You… CSB Bank Investor Presentation Q3 FY21 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 informationalneedsofany particularperson.All informationcontainedhasbeen preparedsolely bytheBank. No information contained herein has been independently verified by anyone else. This presentation may not be copied, distributed, redistributed or disseminated, directly or indirectly,in anymanner. This presentation does not constitute an offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the Bank by any person in any jurisdiction, including India and the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. Any person placing reliance on the information contained in this presentation or any other communication by the Bank does so at his or her own risk andtheBank shall notbeliable forany loss ordamagecausedpursuanttoany actoromission basedonorin reliance upontheinformationcontainedherein. 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Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward- looking statements.TheBankdisclaims any obligation toupdatetheseforward-lookingstatementstoreflectfutureeventsor developments. Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and estimates in the form as it has been disclosed in this presentation. Any opinion, estimate or projection herein constitutes a judgment asof the dateof this presentation andtherecan be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. 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 orbasedon Managementestimates. CSB Bank Investor Presentation Q3 FY21