CSB Bank: Asset Quality to Improve, SME Stress Largely Secured
Earnings
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CNBC TV18•29-01-2026, 15:29
CSB Bank: Asset Quality to Improve, SME Stress Largely Secured
- •CSB Bank's MD & CEO Pralay Mondal expects asset quality to improve in coming quarters, with NPA ratios within regulatory limits.
- •The bank upgraded two SME accounts (up to ₹30 crore exposure) this quarter, with more upgrades anticipated due to previous delays.
- •Higher slippages in Oct-Dec 2025 quarter were mainly from the SME portfolio; retail and wholesale segments remained stable.
- •SME accounts that slipped are largely secured, with 80-90% collateral coverage, indicating no 'intent issue' from borrowers.
- •Gold loan portfolio now 51% of the book, partly due to RBI regulation changes; bank focuses on higher ticket sizes and maintains low Loan-to-Value (LTV) ratios.
Why It Matters: CSB Bank anticipates improved asset quality and reduced slippages, with SME stress largely mitigated by collateral.
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