About the Company:
CSB Bank is one of the oldest private sector banks in India with strong base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra.
Company offers a wide range of products and services to our overall customer base of 1.3 million as on September 30, 2019, with particular focus on SME, Retail, and NRI customers.
Company delivers its products and services through multiple channels, including 412 branches (excluding three service branches and three asset recovery branches) and 290 ATMs spread across 16 states and four union territories as on September 30, 2019.
CSB Bank has developed a well recognized and trusted brand in south India, particularly in the states of Kerala and Tamil Nadu.
Company has four Principal Business areas:
- SME banking
- Retail banking.
- Wholesale banking.
- Treasury operations.
SME Banking Business:
Under the SME banking business, Company caters to financial institutions, agriculture and allied businesses, and vendors and dealers of corporates. CSB Bank offers a wide range of products including term loans, working capital loans, invoice/bill discounting, letters of credit and bank guarantees.
Retail Banking Business:
Under the retail banking business, Company offers a wide range of loan and deposit products to our retail and NRI customers.
Company’s retail lending products include gold loans, vehicle loans including two wheeler loans, loans against properties, personal loans, housing loans, agricultural loans, and education loans.
Wholesale Banking Business:
Under the wholesale banking business, Company caters to large and mid-size corporates and other business entities (with credit requirement of Rs.25 cr and above).
Treasury operations Business:
Company’s treasury operations primarily consist of statutory reserves management, asset liability management, liquidity management, investment and trading of securities, and money market and foreign exchange activities.
Company also distributes life insurance products of Edelweiss Tokio Life Insurance Company Ltd, HDFC Life Insurance Company, and ICICI Prudential Life Insurance Company Limited, and general insurance products of ICICI Lombard General Insurance Company Ltd and Reliance General Insurance Company Ltd.
CAGR Growth Across Business Segments:
Company’s Branch Network:
As on September 30, 2019, Company had a network of 412 branches and 290 ATMs.
Out of these 412 branches, 64 branches are in metropolitan areas, 86 branches are in urban areas, 220 branches are in semi-urban areas, and 42 branches are in rural areas.
Company has wide presence in India, with 267, 56, 30, 17, and 42 of these 412 branches located in the states of Kerala, Tamil Nadu, Maharashtra, Karnataka, and others, respectively.
Details of Contribution by Domestic and NRI deposits:
Geographical Distribution of Deposits:
Positives for the Company:
Well established SME business:
SME business offers comparatively higher yields, cross-selling and associated business opportunities, and higher degree of secured and collateralized loans.
Company focusses on meeting the funding and banking requirements of these SME customers. As a percentage of total advances, loans to SME customers accounted for 32% and March 31, 2019.
Retail offering driven by strong Gold Loan Portfolio:
Gold loans constituted a major portion of advances, contributing 31% March 31, 2019. As on March 31, 2019 Company had 522,248 gold loan accounts, with advances aggregating to Rs.3333.1 crores.
Apart from liquidity of the security and low probability of credit losses, gold loan advances offer benefits of hasslefree lending and lower operational costs. Company’s gold loan book accounted for Rs.3781.8 crores as on September 30, 2019.
Grow and diversify the distribution infrastructure in key geographical locations.
Apart from developing the home market in Kerala, Companyy intends to increase the presence in the rest of India. Towards this objective, company plans to open 425 branches in next five years, subject to regulatory approvals.
Company aims to strengthen their presence in key locations in states such as Maharashtra, Gujarat, Andhra Pradesh, Punjab, Karnataka and Telangana in addition to the home state, Kerala.
Management Team:
- Mr. Madhavan Karunakaran Menon (Designation: Part – time Chairman and Non-executive Director)
- Mr. Rajendran Chinna Veerappan (Designation: Managing Director and Chief Executive Officer)
Financials of the Company:
| (in Crores) | FY 17 | FY 18 | FY 19 | Upto 30th Sept 19 |
|---|---|---|---|---|
| Revenue | 1617.5 | 1422.2 | 1483.4 | 816.7 |
| Net Profit | (-57.9) | (-127.08) | (-65.6) | 44.27 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| CSB Bank Limited | 10 | (-7.9) | N.A | (6.7%) | 73.54 |
| DCB bank Ltd | 10 | 10.5 | 19.4 | 11.3% | 92.7 |
| Federal bank Ltd | 2 | 6.7 | 14.5 | 9.8% | 68.0 |
| South Indian bank Ltd | 1 | 1.4 | 12.1 | 4.9% | 28.2 |
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IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 22nd November 2019 |
| Issue Closes on:. | 26th November 2019 |
| Issue Price | Rs.193 – 195 |
| Face Value | Rs.10 |
| Minimum Lot | 75 Shares |
| Minimum Investment | Rs. 14,625 |
| Offer Breakup | QIB 75% | HNI 15% | Retail 10% |
| Issue Constitutes | 12.19% |
| Issue Size | Rs.409.7 cr ($58 million) |
| Market Cap | Rs. 3768 cr ($538 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 12,30769 |
| Equity Shares Offered (OFS) | 1,97,78,298 |
| Total Equity Shares Offered (Fresh + OFS) | 2,10,09,067 |
| Equity Shares Prior to the Issue | 17,22,25,058 |
| Equity Shares after the Issue | 19,32,34,125 |
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Important Dates:
| Finalization of Basis of Allotment | on or Before 2nd December 2019 |
| Initiation of Refunds | on or Before 3rd December 2019 |
| Credit of Equity Shares: | on or Before 3rd December 2019 |
| Listing Date: | on or Before 4th December 2019 |
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Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 63,02,721 | 0.00 | 0.26 | 62.18 |
| NII | 31,51,360 | 0.10 | 1.07 | 164.9 |
| Retail | 21,00,906 | 5.60 | 21.53 | 43.88 |
| Employee | ——— | —– | —- | —– |
| TOTAL | 1,15,54,987 | 1.05 | 4.35 | 86.81 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| (-7.9) | N.A | (-6.74%) | 73.54 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| CSB Bank Limited (Formerly known as The Catholic Syrian Bank Ltd) ‘CSB Bhavan’, Post Box No. 502 Telephone no.: +91 487 2333 020 St. Mary’s College Road Thrissur 680 020 Kerala, India E-mail: investors@csb.co.in; Website: www.csb.co.in |
| IPO Registrar Info: |
|---|
| 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 E-mail: csb.ipo@linkintime.co.in Website: www.linkintime.co.in |
