In this article, we will discuss in details about the CSB Bank IPO dates, size, its allotment status, CSB Bank IPO subscription, grey market premium and its company’s financial status that will help you to conclude whether you should invest or subscribe for this IPO or not.
|CSB Bank IPO Highlights|
|IPO Price Band||NA|
|Face Value||Rs. 10|
|No. of Shares||172,225,058|
Summary – CSB Bank Limited
CSB Bank is one of the oldest private sector banks in India with a history of over 98 years, and a strong base in Kerala along with a significant presence in Tamil Nadu, Karnataka, and Maharashtra. They offer a wide range of products and services to their overall customer base of 1.3 million as on March 31, 2019, with a particular focus on SME, retail, and NRI customers.
They deliver their 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, and various alternate channels.
The Promoters of this company are FIH Mauritius Investments Ltd. The lead managers to the issue are Axis Capital Limited & IIFL Securities Limited and the Registrar to this issue is Link Intime India Private Limited.
CSB Bank IPO Review
- CSB Bank total assets increased from Rs. 161,276 million as on March 31, 2017, to Rs. 169,112 million as on March 31, 2019.
- On the deposits side, while our overall deposits grew at a slower pace from Rs. 149,116 million in Fiscal 2017 to Rs.151,239 million in Fiscal 2019 due to their conscious strategy of reducing term deposits and focusing more on CASA, our CASA deposits increased from Rs. 36,946 million as on March 31, 2017 to Rs. 42,106 million as on March 31, 2019 and their CASA ratio improved from 24.78% in Fiscal 2017 to 27.84% in Fiscal 2019, leading to a significant reduction in their cost of deposits from 6.89% in Fiscal 2017 to 5.87% in Fiscal 2019.
- CSB Bank advances started growing again from Fiscal 2017. Its advance increased from Rs. 80,008 million in Fiscal 2017 to Rs. 106,152 million in Fiscal 2019. Their yield on advances decreased from 11.10% as on March 31, 2017, to 9.85% as on March 31, 2019.
- Its credit to deposit ratio increased from 53.65% in Fiscal 2017 to 70.19% in Fiscal 2019.
- Their effective risk weight of standard advances decreased from 52.63% as on March 31, 2017 to 41.57% as on March 31, 2019.
- CSB Bank gross NPAs decreased to 4.87% as of March 31, 2019 from 7.25% as of March 31, 2017. The net NPAs decreased to 2.27% from 4.12% during the same period, while their provisioning coverage ratio was 65.50%, 75.83%, and 78.16% in respect of NPAs (including technical write-offs) as of March 31, 2017, March 31, 2018, and March 31, 2019, respectively. They made total NPA provisioning of Rs. 6,871.1 million and total Write-offs including technical/prudential write offs of Rs. 4,437.9 million together amounting to Rs. 11,309 million from Fiscal 2017 to Fiscal 2019. Its restated credit cost was 1.57% in Fiscal 2017, 1.66% in Fiscal 2018 and declined to 0.65% in Fiscal 2019 led by provisioning & write offs in previous Fiscals in terms of their Restated Financial Information.
- The net interest margin increased from 2.11% in Fiscal 2017 to 2.80% in Fiscal 2019 primarily on account of a reduction in their cost of funds and increase in credit to deposit ratio. Its net interest income increased from Rs. 3,136.01 million in Fiscal 2017 to Rs. 4,399.55 million in Fiscal 2019. Their non-interest income decreased from Rs. 2,812.01 million in Fiscal 2017 to Rs. 1,359.18 million in Fiscal 2019; however, excluding treasury operations our non-interest income increased from Rs. 853 million in Fiscal 2017 to Rs. 1,279 million in Fiscal 2019.
- CSB Bank cost to income ratio increased from 74.49% in Fiscal 2017 to 97.68% in Fiscal 2019. However, excluding their treasury profits and extraordinary provision under AS15 of Rs. 873.2 million, the cost to income ratio improved from 111% in Fiscal 2017 to 83.7% in Fiscal 2019.
- Pursuant to a preferential allotment of Equity Shares and warrants to FIHM, They received Rs. 7,207.53 million in Fiscal 2019 and the proposed balance amount of Rs. 4,873.83 million in second quarter of Fiscal 2020, which made them well capitalized and improved their capital adequacy ratio (including capital conservation buffer), as per Basel III Norms, from 10.93% as of March 31, 2017, to 16.70% as of March 31, 2019. Our Tier I capital ratio has been further augmented post capital infusion in the second quarter of Fiscal 2020.
CSB Bank IPO Date
The opening and closing date of IPO of CSB Bank is [●].
CSB Bank IPO Subscription
|Day / Date||QIB||NII||RII||Total Subscription|
|1st Day – Aug 5|
|2nd Day – Aug 6|
|3rd Day – Aug 7|
|Shares Offered or Net Issue|
The shares subscribed by the public will be updated here.
CSB Bank IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
CSB Bank IPO Grey Market Premium
The CSB Bank IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.
CSB Bank IPO Price
The face value of each share is Rs 10, but the price band of the IPO is [●].
CSB Bank IPO Issue Size
172,225,058 Equity Shares of Rs 10, aggregating up to Rs [●].
CSB Bank – Company Overview
CSB Bank is one of the oldest private sector banks in India with a history of over 98 years and has a strong base in Kerala along with a significant presence in Tamil Nadu, Karnataka, and Maharashtra. They offer a wide range of products and services to our overall customer base of 1.3 million as on March 31, 2019, with a particular focus on SME, Retail, and NRI customers.
It deliver their 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.
They are in the process of rebranding themselves to “CSB Bank Limited” to address region and community-related perceptional issues associated with their previous brand name. They are engaged in lateral hiring along with the hiring of new recruits by offering market-based compensation with a performance-linked variable pay component, including employee stock option plans, which will align their employees’ interest with the performance of their Bank.
In Fiscal 2019, They are also adopting a partnership-based approach for sourcing business for certain products and for select operational functions instead of developing in-house capabilities for each function, which will help them to scale up in a more efficient manner.
It is also expanding its product suite, services, and digital banking platform, with investments in technology aimed at improving their customers’ experience, making it easier for them to interact with them, and offering them a range of products tailored to their financial needs.
They have four principal business areas, namely, (a) SME banking, (b) Retail banking, (c) Wholesale banking, and (d) Treasury operations.
CSB Bank – Company Financials
On the basis of Standalone statement:-
|Amount (in INR & Millions)|
|Profit After Tax||(1,270.88)||(1,270.88)||(579.91)|
CSB Bank IPO Lead Managers
|Axis Capital Limited
IIFL Securities Limited
CSB Bank Registrar to the Offer
|Registrar to the Offer|
|Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S Marg, Vikhroli (West)
Mumbai 400 083
Telephone no.: +91 22 4918 6200
Investor Grievance e-mail: email@example.com
Contact Person: Mr. Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
CSB Bank IPO Conclusion
CSB Bank IPO News
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