In a few ideas for profit from Moneycontrol Pro, Neha Dave of Moneycontrol.Com spoke about a stock that she is tracking closely, CSB Bank.

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CSB Bank posted a very good performance in the quarter gone by. Record high net interest margins of above 5 percent and significant recoveries of gold loan NPAs were the key highlights of the bank's performance in Q3 FY 22.

Gross NPA ratio decline, which was in line with the management’s guidance of bringing down the gross NPA ratio to below 2 percent and net NPA ratio to below 1 percent by March 2022.

High-yielding gold loans has been the key driver of CSB Bank’s loan growth and profitability in the past 18 months. Going forward along with the gold loans the bank intends to focus on growing its retail banking business and MSME segments.

In terms of valuation, the stock is trading at around 1.3 times the estimated book value for FY23, which is reasonable considering the growth opportunity on a smaller balance sheet.

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First Published:Feb 23, 2022 11:56 AM IST