CSB Bank IPO Details

Bank’s Profile

Catholic Syrian Bank is an Indian private sector bank with its headquarters at Thrissur, Kerala. It is one of the oldest banks in India founded on 26 Nov 1920. It has strong base in Kerala along with significant presence in Tamilnadu, Karnataka & Maharashtra with overall customer base of 1.3 million as on 31st Mar 2019. They have 414 branches (excluding three service branches and two asset recovery branches) and 290 ATM’s spread across 16 states and four union territories, and various alternate channels.

Out of 414 branches, 353 branches were located in southern India (including 272 branches located in Kerala and 56 branches located in Tamil Nadu) constituting 85.27% of their total branch network.

CASA ratio improved is 27.84% as on March 31, 2019.

CSB has four principal business areas, namely, SME Banking, Retail Banking, Wholesale Banking and Treasury operations.

The bank also distributes life insurance products of various companies under contractual arrangements entered into with them.

Registered and Corporate Office

‘CSB Bhavan’, Post Box No. 502, St. Mary’s College Road, Thrissur 680020, Kerala, India

Object of Issue

  1. To augment Bank’s Tier-I capital base to meet Bank’s future capital requirements and to ensure compliance with Basel III and other RBI guidelines.
  2. To achieve the benefit of listing on stock market through offer sale.

Financials of CSB bank Limited

Fig ‘Rs. in Cr.’

2017 2018 2019
Income 1617.49 1422.22 1483.43
Expenses 1465.78 1347.89 1470.08
Net Income -57.99 -127.09 -65.69
NPA 2.87% 2.27%

Net Interest Margin stood at 3.43 % during April-Sep 2019 period vs 2.8% in FY 2019.

As on March 31, 2019, out of total deposits of ₹ 151,239 million, ₹101,278 million and ₹ 17,710 million were received from Kerala and Tamil Nadu, respectively, constituting 66.98% and 11.70% of total deposits, respectively.

As on March 31, 2019, out of total advances of ₹ 106,152 million, ₹ 33,834 million and ₹ 25,983 million were in Kerala and Tamil Nadu, respectively, constituting 31.87% and 24.48% of total advances, respectively.

Strengths :

  • Strong channel network and trusted brand in South India.
  • Strong capital base post FIHMs investment in bank.
  • Well established SME business.
  • Retail driven strong gold loan portfolio with 34% growth in gold loan book in FY19 vs FY18.
  • Streamlined risk management controls, policies and procedures.
  • Professional and experienced management

CSB Bank IPO Schedule

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Offer Start Date 22 Nov’2019
Offer End Date 26 Nov’2019
Finalization of Basis of  Allotment 2 Dec’2019
Initiation of Refunds 3 Dec’2019
Credit of Shares to Demat Accounts 3 Dec’2019
Listing Date CSB IPO 4 Dec’2019

CSB Bank IPO Detail

IPO Issue Dates 22 Nov’19 – 26 Nov’19
Issue Size Rs. 409.7 Cr
Offer for Sale Rs. 385.7 Cr.
Fresh Issue Rs. 24 Cr.
Price Band Rs. 193-195 per share
Min Market Lot 75 Shares
Listing at  NSE & BSE
Min. Application Amt
Rs. 14,625/-

IPO Registrar and Lead Managers

CSB Bank IPO Registrar

Link Intime India Private Ltd       

Website: http://www.linkintime.co.in

CSB Bank IPO Lead Manager(s)

Axis Capital Limited

 IIFL Holdings Limited

Recommendation of CSB Bank IPO

Weak Points

  • Weak Past performance.
  • No major growth in Deposits.
  • High P/E than peers like (Federal Bank, DCB bank, South Indian Bank etc).

Plus Points

  • Capital Position improves after equity infusion.
  • Transformation and digitization to a new age bank with strong promoter backup.
  • Revamping operational strategy to boost growth and profitability.
  • Promising future with rich regional penetration (South India).
  • Bank has reported profit in 2019.

With Banks major and recent focus in Gold loans and commitment for reduction in Corporate Loans,

The Banks asset quality have improved drastically and its NPAs have also reduced from 2.87% to 2.27% ; further as per the market sentiments for this IPO we recommend to subscribe for Long term as well as short term listing gains.

Check Zee Business’s Mr. Anil Singhavi view in a video message on this IPO here at twitter: https://twitter.com/ipo_research/status/1198111452088811520?s=20

Grey Market Premium/GMP of CSB Bank IPO

Present GMP of CSB IPO is expected to remain between Rs. 55 – 60.

CSB Bank IPO Subscription Status (NSE)

Date & Time

QIB

NII

RII

Total

Shares Offered 63,02,721 31,51,360 21,00,906 1,15,54,987
Nov 22, 2019 17:00 0.00x 0.10x 5.60x 1.05x
Nov 25, 2019 17:00 0.26x 1.07x 21.53x 4.35x
Nov 26, 2019 17:00 62.18x 164.68x 44.25x 86.88x

Frequently Asked Questions (FAQs)

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