CSB Bank Q1 FY 2026 Results: Stock Fall & NPA Analysis

CSB Bank Limited has released its Q1 FY 2026 results (quarter ended 30 June 2025), showing robust business growth and stable asset quality. However, the stock witnessed a small decline after the initial rally. Let’s break down the results and understand whether NPAs (Non-Performing Assets) played a role in the price movement. 📊 Key Q1 FY 2026 Business Highlights Total Deposits: ₹35,990 crore — +20% YoY CASA Deposits: ₹8,465 crore — +14% YoY Term Deposits: ₹27,525 crore — +22% YoY Gross Advances: ₹33,142 crore — +32% YoY Gold Loans: ₹14,928 crore — +36% YoY This strong performance reflects CSB Bank’s momentum in loan growth, especially in the gold loan segment. 🛡️ Asset Quality: NPA Levels One of the most important investor concerns is asset quality. Here’s how CSB Bank performed: Gross NPA (GNPA): ~1.57% (Q1 FY 26) — marginally better than ~1.58% last quarter. Net NPA (NNPA): ~0.52% — improved from ~0.64% in Q4 FY 25. Provision Coverage Ratio (PCR): Healthy (above 80% range, based on past trend). ✅ Conclusion: NPAs did not rise. In fact, both GNPA and NNPA improved slightly, indicating strong credit quality management. 📉 Why Did the Stock Fall After Results? While the fundamentals were strong, the stock reaction tells a different story: Initial Reaction: On the day of the business update (early July), the stock rallied to around ₹401.85. Short-Term Dip: Within a couple of sessions, it slipped about 1–2%, closing near ₹391.80. Likely Reasons: Profit Booking: Traders booking gains after the strong rally. Valuation Cooling: The stock was already trading at a premium; market adjusted slightly. General Market Volatility: Broader market sentiment may have influenced short-term movement. 📌 Takeaway for Investors NPA Concerns? No — Asset quality remains healthy. Stock Fall Reason? Short-term market behavior, not fundamentals. Long-Term View: With strong deposit growth, expanding loan book, and improving NPAs, CSB Bank remains on a stable growth path. 📢 Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always consult a financial advisor before making investment decisions.