What explains the sharp growth in profits of CSB Bank?

For the Sep-20 quarter, CSB Bank reported a sharp spike in net profits by 179% to Rs.69 crore. Even sales revenues were up nearly 50% at Rs.568 crore. Even operating profits were up 172% on a yoy basis during the Sep-20 quarter.

If one glances at the net profit of CSB Bank, the impact of the COVID-19 pandemic was very limited. Gross NPAs as 3.04% is stable while net NPAs at 1.3% indicate that most of the pain is already provided for. CSB is based out of South India with chunk of the business coming from that region.