CSB Bank IPO formerly known as Catholic Syrian Bank, is one of the oldest private sector banks in India and is all set to make a debut in the stock market with an issue size of 409.68 Cr.
CSB BANK IPO– Overview
CSB BANK IPO -Tentative Dates
| CSB BANK IPO opening date | 22 Nov 2019 |
| CSB BANK LIMITED IPO closing date | 26 Nov 2019 |
| Basis of Allotment | 2 Dec 2019 |
| Initiation of Refunds | 3 Dec 2019 |
| The credit of Shares to Demat | 3 Dec 2019 |
| CSB BANK LIMITED IPO Listing Date | 4 Dec 2019 |
Industry Overview.
Traditionally, public banks have accounted for the major proportion of the banking credit outstanding. However, low profitability, weak capital position, low operational efficiency, and an increase in stressed loans in the past few years led to a slowdown in their loan growth. As a result, public banks gradually lost market share to private banks, which were relatively well-capitalized and had a higher degree of operational efficiency. Public banks which accounted for 71% share in credit outstanding in Fiscal 2015, account for only 59% share in Fiscal 2021. While credit growth picked up significantly in Fiscal 2019 for public banks, private banks also witnessed minor improvement in growth.
Company Overview
They are one of the oldest private sector banks in India with a history of over 98 years and have a strong base in Kerala along with a significant presence in Tamil Nadu, Karnataka, and Maharashtra. It has developed a well-recognized and trusted brand in south India, particularly in the states of Kerala and Tamil Nadu.
It offers a wide range of products and services to our overall customer base of 13 lakh as of March 31, 2019, with a particular focus on SME, Retail, and NRI customers.
It delivers products and services through multiple channels, including 414 branches (excluding three service branches and two asset recovery branches) and 277 ATMs spread across 16 states and four union territories as on March 31, 2019, and various alternate channels such as micro-ATMs, debit cards, internet banking, mobile banking, point of sale services and UPI.
Objectives Of The Issue
- To augment Bank’s Tier-I capital base to meet the Bank’s future capital requirements;
- To achieve the benefits of listing Equity Shares on the Stock Exchanges and Offer for Sale.
Financial Statements
| Particulars | 31-Sept-20 | 31-Mar-19 | 31-Mar-18 |
| Total Assets | 1,73,232.58 | 1,64,534.60 | 1,53,346.62 |
| Total Revenue | 8,167.14 | 14,834.33 | 14,222.26 |
| Profit After Tax | 442.72 | 656.89 | 1,270.88 |
Strengths
- Strong network and well-known brand in South India
- Significant capital base
- Established SME business model
- Major portion of gold loans in portfolio
- Prudent risk management controls, policies, and procedures.
Weakness
- Increase in NPA may impact earnings
- Managing asset quality in given current stressed scenario particularly in corporate/SME portfolio
- Volatility in gold prices may impact financials
- Promoter Fairfax (FIHM) will have to dilute 50.1% stake to 15% over the coming 15 years which may create an overhang in the long term
Company Contact Information
CSB Bank Limited
‘CSB Bhavan’, Post Box No 502,
St. Mary’s College Road,
Thrissur – 680 020
Phone: +91 487 2333 020
Email: investors@csb.co.in
Website: http://www.csb.co.in
CSB Bank IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: csb.ipo@linkintime.co.in
Website: https://linkintime.co.in/
