NIM became on the bottom in the first quarter; Expect the quality of the assets in FY26, says CSB Bank MD

Songs for Q1 FY26 seem mixed. What is the business prospects for FY26?

Our growth rates were good, especially if you look at the wider banking sector. We did reasonably well, with a growth of 31 percent in progress and a 20 percent growth in deposits. The good part is that every segment has done well – wholesale and SME loans have grown by more than 30 percent. The growth of the retailing is a bit slow, because we have been careful with uncovered, micro -lenses, agri and some other companies; Not now, but we delayed two years ago.

We want to do it in a very scaled way, with a good strategy and gold loans continue to do well. Now the uncertainties of golden loans have gone, since the regulator has given the company complete clarity. To that extent, except for geopolitical challenge, with which the whole world is confronted, I think in general that we are on schedule. We did well on the top line; Our Nim dropped a bit; Our slips went up somewhat, which influenced our Roa and Roe, but these are one -off type of event. I think our slip will improve.

What is your guidelines for NIM and activation quality?

NIM will be between 3.5 and 4 percent. It is on the bottom in the first quarter. Our guidelines for gross and net non -performance asset (GNPA, NNPA) ratio remain under 2 percent and 1 percent respectively.

Your guidance on progress and deposit growth for FY26?

Given where we are, we must be able to grow between 20 and 25 percent on advances and deposits.

CD ratio has risen to 91.7 percent in Q1. What is your guidance for the entire year?

We want it between 85 and 90 percent. When the liquidity was tight, we wanted to keep our CD ratio between 80 and 85 percent. Now we have raised the bar due to surplus liquidity conditions.

Are you looking for increasing the monthly average balance ceiling?

Fortunately I worked with large, medium and small benches. Large banks have already built a franchise, have many customers and that is why they have to ensure that profitability is in focus, how they can build a wealth franchise, cross-sell, among other things. A large part of the retail trade is built on the wealth franchise in larger banks. To that extent they have to find their segments. Every bank has its own strategy.

For us it is not working that way at the moment, because we are going to build products, franchise, and we need more customers in our branches. We must have clarity which customers should concentrate on us and such movements at large banks help us. They leave the segment we are longing for. If you ask me, £ 20,000 £ 30,000 monthly average balance to keep customers are useful for us. We are very happy to have them on board.