South India based CSB Bank has launched its Initial Public Issue today on November 22, 2019. The issue will be closing on November 26, 2019.

IPO will be listed on National Stock exchange as well as BSE on December 4, 2019.

Here are Top 10 Key points to keep in mind before investing in CSB Bank IPO :

Bank’s Profile

CSB Bank
CSB Bank

CSB bank has strong presence in Kerala along with significant presence in Tamil. It has Customer base of 1.3 million as of September 2019 with 412 branches and 290 ATMs spread in 16 states and 4 union territories.

Its Principle business is SME Banking, Wholesale Banking, Treasury operations, Retail banking.

Issue Detail

IPO offers fresh issue of 24 Cr. and offer for sale by selling shareholders for Rs. 385.71 Cr. making the total IPO size to Rs. 409.71 Cr.

Market Capitalisation

Post Public issue the market capitalisation of bank would be Rs. 3382 Cr.

Objects of Issue

The bank will receive 24 Cr. from issue which it will use for augmenting Tier –I capital base to meet future capital requirements to ensure Basel III & other RBI guidelines.

To meet Issue expense and for other general corporate purposes.

Shareholding

Its total assets (gross) increased from Rs 16,127.6 Cr as on March 31, 2017 to Rs 16,911.2 Cr. as on March 31, 2019 and further, total assets (gross) were Rs 17,755.5 Cr. as on September 30, 2019.

Overall deposits grew at a slower pace from Rs 14,911.6 Cr. in FY17 to Rs 15,123.9 Cr. in FY19 due to its conscious strategy of reducing term deposits and focusing more on CASA. Advances increased from Rs 8,000.8 Cr. in FY17 to Rs 10,615.2 Cr. in FY19.

Profit

CSB Bank reported a profit of Rs. 44.27 Cr. as on September 30,2019 vs a loss of Rs. 65.69 Cr. in March 31, 2019 and vs a loss of Rs. 127.09 Cr. in March 31,2018.

Net NPA (Non Performing Assets) decreased to 1.96% at September’2019 vs 2.27% in March’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

Future Strategies

Grow and diversify distribution infrastructure in key geographical locations.

Increasing products and services for corporate as well as retail customers.

Invest in technology to improve operational efficiency, scalability and customer experience.

Focus on NPA recovery and improve asset quality

Subscription

On very first day itself retail customers have shown strong interest in IPO by subscribing 5.60 times for the IPO which is crucial for the performance of an IPO.

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