History of CSB Bank

CSB 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 13 Lakh 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.

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

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.’

 Mar’2017Mar’2018Mar’2019
Income1617.491422.221483.43
Expenses1465.781347.891470.08
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.

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 Date22 Nov’2019
Offer End Date26 Nov’2019
Finalization of Basis of  Allotment2 Dec’2019
Initiation of Refunds3 Dec’2019
Credit of Shares to Demat Accounts3 Dec’2019
Listing Date CSB IPO4 Dec’2019

CSB Bank IPO Detail

IPO Issue Dates22 Nov’19 – 26 Nov’19
Issue SizeRs. 409.7 Cr
Offer for SaleRs. 385.7 Cr.
Fresh IssueRs. 24 Cr.
Price BandRs. 193-195 per share
Min Market Lot75 Shares
Listing at NSE & BSE
Min. Application Amt
Rs. 14,625/-

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 to further control NPA’s and 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 short term listing gains.

Grey Market Premium/GMP of CSB Bank IPO

Present GMP of CSB IPO is expected to remain between Rs. 68 – 72 which is further expected to increase after looking to second and third days subscription numbers.

CSB BANK IPO Recommendations

ICICI Direct – Subscribe

Zee Business – Subscribe

HEM Securities – Subscribe

Angel Broking – Neutral

CSB Bank IPO Subscription Status (NSE)

Date & Time

QIB

NII

RII

Total

Shares Offered63,02,72131,51,36021,00,9061,15,54,987
Nov 22, 2019 17:000.00x0.10x5.60x1.05x
Nov 25, 2019 17:00 0.26x 1.07x 21.53x 4.35x
Nov 26, 2019 17:00 62.18x164.68x44.25x86.88x

Frequently Asked Questions (FAQs)

CSB Bank is an Indian private sector bank and is nearly 100 years old with strong presence in South India, is planning to list on Market through its IPO.

CSB Bank IPO is coming on November 22- November 26, 2019 with Price Band of Rs. 192-Rs. 195 per share.

The basis of allotment will be finalised on December 2, 2019 and allotted shares will be credited to demat account by December 3, 2019.

Present Grey market Premium (GMP) of CSB IPO is Rs. 68- Rs. 72 as on November 30, 2019.

The tentative date of listing of CSB Bank IPO is December 4, 2019

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