CSB BANK Q2 CONCALL : TARGETS FY28 ROA OF 1.5–1.8%, COST OF FUNDS AT 6% & GOLD LOAN EXPOSURE REDUCTION TO 50% BY FY27-END

• MANAGEMENT EXPECTS FY27 ROA BETWEEN 1.29–1.5%, WITH 1.5% AS AN ASPIRATIONAL TARGET • FY28 ROA TARGETED AT 1.5–1.8%, INITIALLY CLOSER TO 1.5%, WITH LONG-TERM AMBITION OF 1.8% • NIM GUIDANCE MAINTAINED AT 3.75–3.80% VS 3.81% IN Q2, WITH FY28 NIM EXPECTED AROUND 3.75% • MANAGEMENT TARGETS REDUCTION IN COST OF FUNDS TO APPROXIMATELY 6% IN FY28 FROM CURRENT 6.55% • LONG-TERM LOAN GROWTH TARGETED AT 30–50% ABOVE BANKING INDUSTRY GROWTH, SUBJECT TO DEPOSIT MOBILIZATION • MANAGEMENT EXPECTS BUSINESS GROWTH TO ACCELERATE FROM FY28, SUPPORTED BY WHOLESALE, SME & RETAIL LENDING • CASA GROWTH EXPECTED TO EXCEED TERM DEPOSIT GROWTH FROM FY28, SUPPORTING FUNDING COST REDUCTION • GOLD LOAN CONTRIBUTION TARGETED TO DECLINE TO APPROXIMATELY 50% OF ADVANCES BY FY27-END & 32% BY FY30 • GOLD LOAN PORTFOLIO UP 36% YOY, WITH MANAGEMENT FOCUSING ON PORTFOLIO DIVERSIFICATION WITHOUT MATERIALLY AFFECTING PROFITABILITY • CORPORATE LOAN PORTFOLIO UP 44% YOY, WITH STRONG WHOLESALE BANKING MOMENTUM EXPECTED TO CONTINUE • SME LOAN GROWTH EXPECTED TO RECOVER FROM Q3 FY27 FOLLOWING PORTFOLIO CLEANUP & UNDERWRITING IMPROVEMENTS • RETAIL LENDING EXPANSION EXPECTED FROM FY28, WITH POTENTIAL ACCELERATION IN UNSECURED LOANS AFTER STRENGTHENING DEPOSIT FRANCHISE • CORE FEE INCOME EXPECTED AROUND 14–15% OF TOTAL INCOME, WHILE LONGER-TERM OVERALL FEE INCOME CONTRIBUTION COULD REACH 18–20% • MANAGEMENT EXPECTS FURTHER ASSET QUALITY IMPROVEMENT OVER NEXT 2–3 QUARTERS VS CURRENT GNPA OF 1.58% & NNPA OF 0.33% • LOW CASA RATIO, GOLD LOAN CONCENTRATION, HIGH TECHNOLOGY EXPENSES, GOLD PRICE VOLATILITY & BANCASSURANCE REGULATORY CHANGES REMAIN KEY RISKS

CSB BANK LIMITED

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