CSB Bank Limited IPO: Review, Listing
Update:
CSB Bank Limited Listing
CSB Bank Limited (Catholic Syrian Bank), made a strong debut on bourse on 4 December, with the share price rallying 57.4% over the IPO price of INR 195 on the listing day.
Kerala-based private sector bank started off the first day at INR 275 on the BSE, a 41% premium over its issue price of INR 195 per share and touched an intraday high of INR 307.
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19 November, 2019
CSB Bank Limited – one of the oldest private sector banks in India (98+ years) is planning to raise INR 409.68 Crore via IPO [Fresh Issue (INR 24 Cr) and Offer for Sale (INR 385.68 Cr)]
CSB Bank Limited: Profile
Incorporated in the year 1920, Kerala based CSB Bank Limited (formerly known as Catholic Syrian Bank) is one of the oldest private sector banks in India.
The Bank has a strong base in Kerala along with significant presence in the states like Karnataka, Tamil Nadu, and Maharashtra.
CSB Bank Limited: Businesses
The Bank’s business is primarily organized as –
SME Banking: In the SME business, the bank caters to agricultural SMEs, emerging corporates, financial institutions, small and medium industries, suppliers, and dealers. Various facilities offered under the SME business are Term loans, Bank Guarantee, Commercial Vehicle loans, Export Finance, Inland bill discounting, Import Finance, Letter of Credit, Buyers’ / Suppliers ‘Credit, TReDS bill discounting, Working capital loans etc.
Retail Banking: The bank’s retail banking business offers wide range of products and services to individuals. The products under our retail business can broadly be classified into three (i) loans and advances, (ii) third-party products, and (iii) financial inclusion
Wholesale Banking: CSB Bank fulfils business needs of large & mid-size corporates, and business entities of INR 25 Crore and more credit requirement under Wholesale Banking category.
Treasury Operations: The banks treasury department undertakes fund management and maintains the statutory reserve requirements of the Bank. The bank’s treasury department invests in (1) sovereign and corporate debt instruments, (2) undertakes proprietary trading in equity and fixed income securities and foreign exchange, and (3) invests in certificate of deposits and mutual funds as part of management of short-term surplus liquidity within the framework of our Bank’s investment policy.
CSB Bank Limited also has a contractual arrangement to distribute life insurance products of Edelweiss Tokio, HDFC, and ICICI Prudential Life Insurance Company Ltd and general insurance products of Reliance General Insurance Company Ltd.
CSB Bank: Network
CSB Bank Limited offers a wide range of products and services to overall customer base of 1.3 million as on March 31, 2019.
The bank deliver its 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.
Company Promoters:
The Promoter of the Bank is FIH Mauritius Investments Ltd (FIHM)
In 2018, Watsa’s Fairfax India Holdings (FIH) Corporation has acquired CSB Bank with 51 percent stake. Currently, the bank is focussing on a new business model to work as a full-service new age private sector bank with the help of its promoter, FIH Mauritius Investments Ltd (FIHM)
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Financial Performance
CONCLUSION –
Considering company’s valuation, financial parameters, and the sector potential in which it is operating, FinBlab recommends AVOID ratings on CSB Bank Limited IPO for the time-being (will review again after a few quarters)
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