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CSB Bank IPO Review

IPO Status: Listed [22nd Nov 2019 to 26th Nov 2019]

Rated 4/5 by Team InvestorGain
CSB Bank IPO Detail

CSB Bank IPO Details

IPO Issue Opening Date: 22nd Nov 2019
IPO Issue Closing Date: 26th Nov 2019
IPO Issue Price: ₹193-195 Per Share
DRHP: Download DRHP
RHP: Download RHP
Anchor List: Download Anchor List
IPO Listing At: BSE, NSE
Retail Quota: TBD
IPO Issue Type: Book Build Issue
IPO Issue Size: ₹409.68 Cr
Offer for Sale: 19,778,298 Eq Shares of ₹10
Fresh Issue: ₹24.00 Cr
Face Value: ₹10 Per Equity Share
IPO Discount: ₹0
Promoter Holding Pre IPO: 50.09%
Promoter Holding Post IPO: 49.70%
Allotment Status: Allotment Status
BSE Code: 542867
NSE Code: CSBBANK

CSB Bank IPO Important Dates

Get important updates regarding CSB Bank IPO tentative timeline covering IPO opening, closing, allotment, and listing dates. Dates are updated as they are announced.

CSB Bank IPO dates
IPO Activity Date
Basis of Allotment Date* 2nd Dec 2019
Refunds Initiation* 2nd Dec 2019
Credit of Shares to Demat* 3rd Dec 2019
IPO Listing Date* 4th Dec 2019

* - Tentative Dates

CSB Bank IPO Lots

IPO Activity Date
Issue Price ₹193-195
Market Lot: 75 Shares
1 Lot Amount: ₹14625
Min Small HNI Lots(2-10 Lakh): 1050 shares(14 lots) - ₹204750
Min Big HNI Lots(10+ Lakh): - ₹1009125

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About Company - CSB Bank

Incorporated Year: 1920
Sector: Banking and Finance
Website: https://www.csb.co.in/

CSB Bank IPO

The IPO of CSB Bank opens on 22nd Nov and closes on 26th Nov 2019. The company is offering shares in the price band of ₹193 to ₹195 per equity share.

About CSB Bank Limited

The CSB Bank is India’s oldest private sector bank with a history of over 98 years. The bank has approx 1.3 million customers as of 31st March 2019. The bank has strong presence in Kerela and also branches in Tamil Nadu, Karnataka, and Maharashtra having 414 branches and 277 ATMs across India.

The major business areas of CSB Bank are

  • Retail Banking

    Retail banking business of CSB Bank includes loan and deposit products to residents and NRI customers. Under deposit products bank offers current accounts, saving account, fixed deposits, recurring deposits and corporate salary accounts. The lending products include gold loans, vehicle loans, personal loans, housing loans, agricultural loans and education loans. The bank has tie-up with major money transfer agents and exchange houses to provide inwards remittance services.

  • Wholesale Banking

    Wholesale banking business is referred to banking services between merchant banks and other financial institutions and corporates. The CSB Bank caters to large and mid-size corporates and other businesses with credit requirements of 25 cr and above.

  • SME Banking

    Small and medium enterprise (SME) banking business services of the CSB Bank includes term loans, working capital loans, letter of credit and bank guarantees to financial institutions, vendors and dealers of corporates and agriculture & allied businesses. As SME loans are for smaller individual exposure, it mitigates credit risk for CSB Bank.

  • Treasury Operations

    The CSB Bank treasury operations includes statutory reserves management, asset liability management, liquidity management, investment and trading of securities, money market and foreign exchange activities. The treasury operations are aimed at maintaining an optimum level of liquidity required as per RBI mandated CRR and SLR.

  • Other Services

    CSB Bank also offers distribution of life insurance products of Edelweiss Tokio Life Insurance, HDFC Life Insurance and ICICI Prudential Life Insurance.

The bank also offer General Insurance products of ICICI Lombard and Reliance General Insurance Company Limited.

The bank's total assets increased from ₹: 161,276 million in 2017 to ₹: 169,112 million in 2019. In FY 18-19, FIH Mauritius Investments Ltd (FIHM), the subsidiary of Fairfax India Holdings (FIH) Limited acquired 51% stake in CSB Bank. Under new management, branches will be mostly responsible for deposits, cross-selling and customer servicing along with all loan products.

CSB Bank IPO Strengths

  • Trusted brand in South India and Strong Branch Network.
  • After FIHMs investment, the bank has strong capital base for growth.
  • Strong hold in SME business which is low credit risk business.
  • Significant growth in gold loan business year on year.
  • Reliable and stable deposit base due to NRI customers.
  • Aggressive plan to increase branches in coming year.
  • Planning to invest in technology to increase operational efficiency, scalability and customer experience.
  • Effective risk management process.
Incorporation Sector IPO Issue Size Website
NULL NULL ₹409.68 Cr https://www.csb.co.in/

CSB Bank IPO Objective

  • Fresh Issue – to augment bank’s tier-1 capital base to meet future capital requirements.
  • Offer for sale - to achieve the benefits of listing the equity shares on the stock exchanges.

CSB BANK IPO Updates

  • The Anchor Investors bidding start one day in advance - 21st Nov, 2019
  • Investors Portion: QIB=75% of the offer, NIB=15% of the offer and Retail=10% of the offer
  • Price Band and lot size is going to declare two days in advance.

CSB Bank IPO Subscription Details

Latest update on CSB Bank IPO Subscription.

    CSB Bank IPO Subscription
    Details Qualified Institutinol Buyers(QIB) Non Institutinol Investors (NII) Retail Individual Investors (RII) Total
    Shares Available 6,302,721 3,151,360 2,100,906 11,554,987
    Day 1 - Nov 22, 2019 17:01 0.00x 0.10x 5.60x 1.05x
    Day 2 - Nov 25, 2019 17:01 0.26x 1.07x 21.53x 4.35x
    Day 3 - Nov 26, 2019 19:01 61.18x 164.68x 44.36x 86.90x

Our experts can help you prepare for SME IPO

CSB Bank financial
CSB Bank IPO Financials 31-Mar-2019 31-Mar-2018 31-Mar-2017
Total Assets ₹16453.46 Cr ₹15334.66 Cr ₹15770.03 Cr
Total Expense ₹1483.43 Cr ₹1422.23 Cr ₹1617.49 Cr
Net Profit/Loss (₹65.69 Cr) (₹127.09 Cr) (₹57.99 Cr)
Adjustment for Profit/Loss C/F (₹513.96 Cr) (₹448.27 Cr) (₹319.63 Cr)

Company Address

CSB Bank Limited
St. Marys College Road
Thrissur,Kerala-680020
India
Website: https://www.csb.co.in/
Phone: +91 487 2333 020, +91 487 2338 764
Email: [email protected]

CSB Bank IPO Registrar

Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai - 400083
Website: https://linkintime.co.in/Initial_Offer/public-issues.html
Phone: +91-22-4918 6270
Email: [email protected]

CSB Bank IPO Lead Manager

CSB Bank IPO Important dates - Issue Open Date, close Date, IPO Listing Date. IPO Details - Offer Size, Issue Size, Type of IPO, Issue Price, Market Lot, BSE Cd, NSE Cd, IPO Listing date. What is the issue open date and close date for CSB Bank? Should I apply in CSB Bank IPO?

Last Updated on 03-Dec-2019 22:48:15


User Reviews

13. IPO Potter Dec 03 2019 12:35:39 PM Reply
CSB Bank Limited Listing on 4th Dec 2019. NSE Code - CSBBANK, BSE Code - 542867, ISIN No - INE679A01013.

Expected listing price - 265, Max 295.

All the best for all the investors who received shares in IPO.
12. Mital Gadhavi Nov 25 2019 09:32:23 AM Reply
Can I apply CSB Bank IPO Tmr?
12.1. admin Nov 25 2019 10:21:10 AM
You can apply up to 2 pm on 26 Nov 2019(Tuesday) from net banking (ASBA) and maybe up to 4 pm on 26 Nov 2019 in the banks where they are accepting the physical applications (please check-up the respective cut-off timings).
12.2. IPO Potter Nov 26 2019 12:46:50 PM
GMP for CSB IPO is 70-75, Apply ....
11. Vijay Nath yadav Nov 23 2019 09:20:19 AM Reply
Can I apply 13 lots of CSB Bank in Retail Category, Please advise?
11.1. IPO Guru Nov 23 2019 09:23:11 AM
Yes, You can apply 13 lots (975 Shares), but keep in mind that on day one retail category is already subscribed 5.6x, so it''s advised to apply only one lot of 75 shares.
10. IPO Updates Nov 22 2019 11:15:19 AM Reply

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9. Vikash kumar mishra Nov 20 2019 03:41:30 PM Reply
Can we apply CSB IPO form bank?
9.1. Nuthan prabhu Nov 20 2019 03:43:13 PM
Yes, You can apply via ASBA or Bank. When you are applying from Bank, you need to use the UPI payment method.
9.2. Ramamohan T Nov 22 2019 09:20:58 AM
Can I apply 5 different CSB Bank IPO Demat applications through single SBI bank account net banking?
9.3. Nuthan prabhu Nov 22 2019 09:23:47 AM
Yes, You can use ASBA to apply 5 different application through SBI and Axis Bank account. Not each application must be with a unique user (Demat account with different PAN Number).
8. IPO Updates Nov 22 2019 09:19:55 AM Reply
From Moneycontrol. -
SBI Cards & Payment Services, the country's second-largest credit card provider, is all set to file its draft red herring prospectus (DRHP) early next week and move towards launching the first domestic initial public offer (IPO) by a pure-play credit card company. The Gurgaon-headquartered firm is a subsidiary of the State Bank of India and its IPO is all set to raise around Rs 9000 crore, making it the biggest listing yet in FY20.
7. IPO Guru Nov 22 2019 09:15:04 AM Reply
Anchor Investor Update for CSB Bank IPO-
"OMERS " Canada''s largest defined pension plans got about 38% of the equity shares available for allocation under the Anchor Investor Portion of CSB.
The other anchor investors include Aditya Birla Sun Life Mutual Fund (MF), Axis MF, ICICI Prudential MF, Sundaram MF, SBI MF, Ashoka India opportunities Fund, Jupiter India Fund.
7.1. Nuthan prabhu  Nov 22 2019 09:16:19 AM
OMERS Administration Corporation (OAC Custody Account - SCV6) has emerged as the single-largest anchor investor in CSB Bank''s initial public offering (IPO), getting an allocation of 37.97 percent of the equity shares available for allocation under the Anchor Investor Portion.
7.2. Gyanendra kumar Nov 22 2019 09:17:25 AM
CSB Bank IPO Updates
Anchors received a Good Response of 2.5X till 3 PM.
GMPs 80 Rs
HNIs are Now Participating in this
HNIs Book 61.5 CR
6. KBoss  Nov 14 2019 07:28:32 PM Reply
What is GMP for CSB IPO?
6.1. Badal Kataria Nov 15 2019 09:02:58 AM
Current GMP for CSB Bank IPO 93-95

Estimated oversubscription:
QIB - 100
Retail 8-9 times
HNI - 260+
6.2. Gyanendra kumar Nov 19 2019 12:20:30 PM
GMP of CSB IPO is 52-53
GMP of Ujjivan SFB IPO is about 8
6.3. Siva kumar Nov 19 2019 09:02:55 PM
Current GMP- 55 to 60 Expected listing gain per lot is around 4100
6.4. Hiralal Premraj Borase Nov 21 2019 03:44:28 PM
Latest Kostak Rate for CSB IPO - 4600 Rs @ 76/78 Rs Premium
6.5. Gyanendra kumar Nov 21 2019 03:47:05 PM
Latest update on GMP Price

USFB IPO GMP 10-11
CSB Bank IPO GMP 75-77
5. IPO Guru Nov 20 2019 08:48:12 AM Reply
CSB Bank Brokers Meet - Key takeaways

Capital adequacy at 22% has improved substantially post fair fax infusion.

Loan book has started to grow at 17-18%, this is helping in an increase in credit deposit ratio, which in turn is helping in better margins. Credit deposit ratio should continue to improve.

Current book mix - 33% is gold loan, 32% SME, 8% retail and 28% corporate.Going forward growth will be driven by gold, msme and retail.

A new msme team from a private bank is joining this month to drive msme growth. 2 wheeler and gold loans there is already a very competitive team in place.

NIM has improved to 3.4% from 2.1% in FY16, margins should continue to improve via a better credit deposit ratio, a better loan book mix (gold loan yields are 12.5% and have an upward bias, MSME yields also upwards of 12%, - both the business should be growth drivers for them with their mix improving sharply)

Deposits- Bank has cut rates this year and despite the cut seen a 98% renewal rate in retail term deposits, this should help contain cost of funds at low levels. CASA ratio stands at 28%, management intends to take this to over 40% in next few years.

Operating costs- In last 2 years, employee base has reduced from 3000 to 1900, additionally now the bank is out of the IBA wage agreements, almost all its employees are on CTC basis. Management has reduced employee cost significantly, and they target further reduction. Current average salary per employee is 11.5 lac, where as new employees are being appointed at 3.5-4 lac, it expects a material reduction in costs of wages in next few years.
Also currently bank has 260 branches which won''t be expanded in a big way, they will shut some branches and open new branches.

Cost Income ratio- FY19 cost income ratio was 102%, it included one time provisioning of 100 crore on account of VRS given to employees. Currently cost income ratio has improved to 66%, this should further see sharp improvement driven by higher income growth led by better margins and expansion in loan book, at the same time operating cost should be contained in account of continuous reduction in employee cost.

Asset Quality- currently GNPA is 2% with almost 80% Provision cover. All of the legacy problems have been more than addressed and no shocks is expected going ahead. In the new disbursement taken place in last 3 years, they have seen only one major NPA of 25 crore, and as such management is confident of asset quality of the new book. Credit costs are expected to be pretty controlled.

Promoter holding - Fairfax will own 49.7% stake post listing, it has to get this down to 40% in next 5 years, 30% in 10 years and 15% in next 15 years progressively.

Post heavy losses in FY18/19, CSB declares operating profit of 90 crore in H1FY20 and 44 crore of PAT. This implies 4.5% ROE.

Bank post issue Mcap is expected to be 3400 crore, it''s net worth is about 2000 crore currently implying a P/BV of 1.7x TTM.

View- Quite honestly the sort of turnaround that the bank has achieved in past 18 months is nothing short of phenomenal. Profitability of the bank should see massive improvement in next 2 years driven by higher loan growth, better book mix, high margins and low cost income ratio. Bank can deliver mid teens ROE from FY22, and hence can command a premium to peers. Also CEO seems very confident on its ability to deliver better return ratios, management team quality is also very decent.
4. Sandip Kumar Dey Nov 19 2019 09:04:32 PM Reply

CSB has posted turnaround results in 6MFY20 and has improved its operational and financial performance. We believe the bank should do well with the recent capital raise and its strong risk management frameworks. On the valuation front, at the upper end of the price band, CSB is valued at a 2.31 P/BV and 25.31x P/E. Taking into account huge growth prospects and its comfortable asset quality stock looks attractive for investment. We give "SUBSCRIBE" rating in the stock for listing gains.


Long term - No view currently.