CSB Bank
Mainboard₹410 Cr issue
+41.03%
Listing gain over issue price
Issue size
₹410 Cr
1 lot at cut-off
₹14,625
Lot size
75shares
Open
22 Nov 2019
Close
26 Nov 2019
Allotment
02 Dec 2019
Listing
04 Dec 2019
Listing performance
Issue price
₹195
Listed at
₹275
Listing-day close
₹300.10
Latest price
₹311.80
Close on 23 Oct 2026
Listing gain
+41.03%
Return since issue
+59.90%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Nov 2019 – 26 Nov 2019
- Listing date
- 04 Dec 2019
- Face value
- ₹10 per share
- Issue price
- ₹195 per share
- Lot size
- 75 shares
- Total issue size
- ₹410 Cr
- Promoter holding
- 50.09% → 49.70% pre-issue → post-issue
- ISIN
- INE679A01013
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- 'CSB Bhavan', Post Box No 502,, St. Mary's College Road,, Thrissur - 680 020, Kerala
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 94,54,080 | — | — |
Application size
Minimum 75 shares per lot, in multiples, at ₹195
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 75 | ₹14,625 |
| Retail (max) | 13 | 975 | ₹1,90,125 |
| S-HNI (min) | 14 | 1,050 | ₹2,04,750 |
| S-HNI (max) | 68 | 5,100 | ₹9,94,500 |
| B-HNI (min) | 69 | 5,175 | ₹10,09,125 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
94,54,080
Anchor portion
₹184 Cr
at ₹195 per share
Valuation and performance
Valuation at offer price
₹195 per share
| Metric | Pre-issue | Post-issue |
|---|
About CSB Bank
CSB Bank Limited (formerly known as The Catholic Syrian Bank Limited) was incorporated on November 26, 1920, making it one of the oldest private sector banks in India with over 98 years of history. The Bank has a strong regional base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra. It offers a wide range of banking products and services to approximately 1.3 million customers as of March 31, 2019, with particular focus on SME, retail, and NRI customer segments. The Bank operates through 414 branches (excluding three service branches and two asset recovery branches) and 277 ATMs spread across 16 states and four union territories. The Bank rebranded from 'The Catholic Syrian Bank Limited' to 'CSB Bank Limited' in June 2019 to align with its transformation from a traditional regional bank to a new-age bank with wider presence.
Company Analysis
from DRHPCSB Bank Limited is a private sector bank offering retail, SME, and NRI banking products and services across India with deep presence in southern India.
CSB Bank Limited (formerly known as The Catholic Syrian Bank Limited) was incorporated on November 26, 1920, making it one of the oldest private sector banks in India with over 98 years of history. The Bank has a strong regional base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra. It offers a wide range of banking products and services to approximately 1.3 million customers as of March 31, 2019, with particular focus on SME, retail, and NRI customer segments. The Bank operates through 414 branches (excluding three service branches and two asset recovery branches) and 277 ATMs spread across 16 states and four union territories. The Bank rebranded from 'The Catholic Syrian Bank Limited' to 'CSB Bank Limited' in June 2019 to align with its transformation from a traditional regional bank to a new-age bank with wider presence.
Banking and Financial ServicesRetail BankingSME BankingNRI BankingAgricultural/Priority Sector LendingGold Loans
Objects of the Issue
- To augment our Bank's Tier-I capital base to meet our Bank's future capital requirements which are expected to arise out of growth in our Bank's assets, primarily our Bank's loans/advances and investment portfolio and to ensure compliance with Basel III and other RBI guidelines. ₹ 300 million p.18
- Augment our Bank's Tier-I capital base to meet our Bank's future capital requirements which are expected to arise out of growth in our Bank's assets, primarily our Bank's loans/advances and investment portfolio, and to ensure compliance with Basel III and other RBI guidelines ₹300 million (Fresh Issue) p.91
- Meeting the expenses of the Offer p.91
- Capital infusion to improve capital adequacy ratio ₹7,207.53 million received in Fiscal 2019; balance ₹4,873.83 million in Q2 Fiscal 2020 p.376
- Fresh Issue aggregating up to ₹ 300 million ₹ 300 million p.568
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating to ₹ 300 million
- Offer for Sale
- Up to 19,778,298 Equity Shares aggregating to ₹ [●] million by the Selling Shareholders
- Price Band
- [●] per Equity Share (Floor Price) and [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The Bank earns revenue primarily through net interest income from lending operations, including advances to SMEs, retail customers, and gold loans, as well as deposits from retail and wholesale customers, particularly NRI deposits. As of March 31, 2019, gold loans represented 31% of total loans outstanding. The Bank also generates fee-based income from various banking services and has investments in government securities and other instruments. The Bank's funding is primarily met through customer deposits, comprising both short-term and long-term deposits from retail depositors (less than ₹20 million) and wholesale depositors (₹20 million and above).
Business Segments
Provides loans secured by gold ornaments to specific customer segments with monthly interest payments and principal due at maturity, with margin requirements to account for potential decrease in gold value
Provides lending and banking services to small and medium enterprises with focus on building SME advances
Provides banking services to Non-Resident Indians including personalized products, graded products with value added features, and remittance services through exchange houses and money transfer agents
Provides retail banking services including deposits, loans, and various banking products to retail customers
Provides lending to priority sectors including agriculture, social infrastructure, renewable energy, loans to MSMEs, housing loans, and educational loans as mandated by RBI
Interest earned on advances/bills, income on investments, interest on balance with RBI and inter-bank lending
Commission, exchange and brokerage, profit on sale of investments, profit on sale of land and assets, profit on exchange transactions, miscellaneous income
Caters to financial institutions, agriculture and allied businesses, and vendors and dealers of corporates. Offers term loans, working capital loans, invoice/bill discounting, letters of credit and bank guarantees.
Offers loan and deposit products to retail and NRI customers including gold loans, vehicle loans, loans against properties, personal loans, housing loans, agricultural loans, and education loans. Deposit products include current accounts, savings accounts, fixed deposits.
Caters to large and mid-size corporates and other business entities with credit requirement of ₹250 million and above. Provides working capital finance, corporate loans, term loans, bill finance, export/import finance, buyers'/suppliers' credit, letters of credit, bank guarantees, and cash management services.
Manages statutory reserves, asset liability management, liquidity management, investment and trading of securities, and money market and foreign exchange activities. Maintains SLR portfolio and invests in sovereign debt instruments, commercial papers, mutual funds, and other securities.
Corporate and industrial lending including mining and quarrying, food processing, textiles, chemicals, rubber and plastics, basic metals, engineering, construction, and infrastructure
Lending to agricultural sector and allied activities
Lending to service sector including transport operators, computer software, tourism and hotels, shipping, professional services, wholesale and retail trade, commercial real estate, and NBFCs
Housing loans, consumer durables, vehicle/auto loans, education loans, advances against fixed deposits, and other retail loans
Lending for purposes classified as other non-food credit
Treasury operations and investment management
Corporate and wholesale banking services
Retail banking services including advances and deposits
Other banking operations
Caters to financial institutions, agriculture and allied businesses, and vendors/dealers of corporates. Offers term loans, working capital loans, invoice/bill discounting, letters of credit, and bank guarantees. Enables credit risk diversification through smaller individual exposures with higher yields.
Offers loan products including gold loans, vehicle loans, loans against properties, personal loans, housing loans, agricultural loans, and education loans. Provides deposit products including current accounts, savings accounts, fixed deposits, recurring deposits, and corporate salary accounts.
Caters to large and mid-size corporates and other business entities with credit requirement of ₹250 million and above.
Consists of statutory reserves management, asset liability management, liquidity management, investment and trading of securities, and money market and foreign exchange activities. Maintains optimum liquidity while complying with RBI mandated CRR and SLR requirements.
Distributes life insurance products of Edelweiss Tokio Life Insurance Company Limited, HDFC Life Insurance Company, and ICICI Prudential Life Insurance Company Limited, and general insurance products of ICICI Lombard General Insurance Company Limited and Reliance General Insurance Company Limited.
SWOT Analysis
Strengths
- • Oldest private sector bank with 98+ year history(p.18)
- • Strong customer base and multi-channel distribution(p.18)
- • Improved capital adequacy ratio(p.30)
- • Growing NRI deposit base(p.31)
- • Improving asset quality metrics(p.23)
- • Strong channel network and trusted brand in South India(p.96)
- • Well established SME business(p.96)
- • Retail offering driven by strong gold loan portfolio(p.96)
- • Stable and granular deposit base(p.96)
- • Professional and experienced management with strong and independent Board(p.96)
- • Streamlined risk management controls, policies and procedures(p.96)
- • Strong capital base(p.96)
- • Over 98 years of banking history with trusted brand in South India(p.137)
- • Strong capital position post-FIHM investment(p.137)
- • Comprehensive branch network across 16 states and 4 union territories(p.137)
- • Well-established SME business with diversified credit risk(p.138)
- • Strong gold loan portfolio with rapid growth(p.139)
- • Stable and granular deposit base with improved CASA ratio(p.139)
- • Improved asset quality with declining NPAs(p.140)
- • Established distribution network across multiple channels(p.166)
- • Broad branch reach with presence in 20 states/territories(p.167)
- • Centralized technology infrastructure with disaster recovery(p.167)
- • Strong credit risk management processes(p.168)
- • High proportion of low-risk credit portfolio(p.163)
- • Diversified and balanced loan portfolio across sectors(p.165)
- • Experienced and stable workforce(p.172)
- • Promoter has substantial ownership stake and long-term capital appreciation mandate(p.220)
- • Promoter voting rights are capped at regulatory limit to protect minority shareholders(p.220)
- • Improved capital adequacy ratios post capital infusion(p.244)
- • Strong provisioning coverage for NPAs(p.267)
- • One of the oldest private sector banks with 98+ years of history(p.373)
- • Strong regional base in Kerala with significant presence in south India(p.373)
- • Established customer base of 1.3 million with focus on SME, retail, and NRI segments(p.373)
- • Diversified distribution network with 414 branches and 277 ATMs across 16 states(p.373)
- • Well-recognized brand in south India with focus on quality service and long-term relationships(p.373)
- • Improved capital adequacy post-FIHM investment, raising CRAR from 10.93% to 16.70%(p.376)
- • Strong NIM improvement from 2.11% to 2.80% driven by lower cost of funds(p.376)
- • Gold loan business growing at 28.3% CAGR with advances increasing from ₹20,263m to ₹33,331m(p.375)
- • Strong capital adequacy ratio improvement(p.397)
- • Growing advances portfolio(p.395)
- • Improved deposit base(p.396)
- • Improving asset quality metrics(p.394)
- • Improved provision coverage(p.394)
- • Diversified loan portfolio by sector(p.411)
Weaknesses
- • High concentration in southern India, particularly Kerala(p.24)
- • Significant gold loan portfolio concentration(p.25)
- • Missing corporate records from incorporation period(p.30)
- • Losses in recent fiscal years(p.44)
- • Low CASA ratio relative to industry standards(p.26)
- • Majority of branch premises on lease with expiring leases(p.37)
- • Senior management retirement risk(p.28)
- • Failed to meet minimum capital adequacy requirements in past(p.30)
- • Inability to guarantee accuracy of third-party statistical data used in prospectus(p.46)
- • Net proceeds deployment not subject to independent monitoring despite unapproved objects(p.46)
- • Exposure to cyber threats targeting internet banking services and customer data(p.46)
- • Past cyber security breach with website defacement in 2018(p.46)
- • Uncertainty in implementing Ind AS accounting standards impacts on financial reporting(p.47)
- • Potential difficulty in implementing effective internal controls under Ind AS(p.47)
- • Accumulated losses and negative profitability reducing shareholder value(p.56)
- • RBI may remove key employees or supersede the Board(p.49)
- • High cost-to-income ratio(p.137)
- • Declining SME advances and market share(p.135)
- • Relatively lower CASA ratio compared to industry benchmarks(p.139)
- • Heavy concentration in single product (gold loans)(p.135)
- • Limited geographic diversification outside South India(p.151)
- • High concentration in single state (Kerala)(p.167)
- • Significant exposure to NBFCs(p.165)
- • High attrition rate among Key Managerial Personnel(p.219)
- • Majority of branches on leased premises(p.172)
- • Incomplete DFS approval restricting equity capital infusion(p.195)
- • Outstanding customer complaints indicating service issues(p.168)
- • Promoter lacks operational banking experience(p.221)
- • Promoter is not original promoter and was identified later by RBI(p.221)
- • Consistent losses over three-year period(p.232)
- • No dividend declared due to losses(p.225)
- • High NPA ratio affecting asset quality(p.247)
- • Accumulated losses reducing net worth(p.231)
- • Loss-making group company dependent on bank(p.223)
- • High operating cost and low capital adequacy constrained growth in recent years(p.375)
- • Persistent losses with net loss of ₹656.9 million in Fiscal 2019(p.387)
- • Historically failed to maintain minimum prescribed CRAR under Basel III norms(p.380)
- • High NPA ratio of 4.87% as of March 31, 2019 indicating asset quality concerns(p.376)
- • Low credit-to-deposit ratio of 70.19% indicating underutilization of deposit base(p.376)
- • Cost-to-income ratio of 97.68% in Fiscal 2019 indicating poor operational efficiency(p.376)
- • Concentration of advances with top 20 borrowers representing 13.50% of total advances(p.378)
- • Concentration of deposits with top 20 depositors representing 6.85% of total deposits(p.378)
- • Persistent losses from operations(p.394)
- • High cost-to-income ratio(p.406)
- • Deteriorating absolute net profit(p.422)
- • Large accumulated losses(p.396)
- • High gross NPA ratio(p.394)
Opportunities
- • Large unbanked population in India presents growth opportunity(p.18)
- • Growing SME lending focus(p.31)
- • Expansion outside southern India(p.24)
- • New branch opening permissions from RBI(p.40)
- • Introduction of new product lines(p.26)
- • Rebranding to modernize image and expand market reach(p.31)
- • Augment Tier-I capital base to support asset growth and Basel III compliance(p.91)
- • Enhanced visibility and brand image through listing on stock exchanges(p.91)
- • Access to public capital markets and liquidity for shareholders(p.91)
- • Potential for consolidation in banking sector with enhanced competitive strengths(p.46)
- • Growth in gold loan portfolio and retail segment expansion(p.96)
- • Expansion of SME business lines(p.96)
- • Expand SME business into new clusters across India(p.138)
- • Significant branch expansion planned over next five years(p.145)
- • Growing retail lending market with focus on gold and two-wheeler loans(p.143)
- • Expanding NRI deposit base and remittance services(p.144)
- • Digital transformation and technology adoption for improved efficiency(p.142)
- • Launch of new products and services expansion(p.142)
- • India's strong economic growth and banking sector expansion(p.109)
- • Expansion into underbanked rural and semi-urban markets(p.176)
- • Priority sector lending targets for agriculture and MSME growth(p.179)
- • Cross-sell of wider product range via digital platform(p.171)
- • Growth in digital banking services and fintech integration(p.171)
- • Expansion of insurance distribution partnerships(p.192)
- • Capital infusion enabling business expansion(p.243)
- • Increased advances base showing growth trajectory(p.230)
- • Growing deposits indicating market acceptance(p.230)
- • Expansion of business correspondent network(p.223)
- • Strategic tie-up for foreign exchange services(p.262)
- • Strong growth prospects in Indian economy expected to grow over 7% per annum(p.377)
- • Expansion of SME lending business offering higher yields and cross-selling opportunities(p.374)
- • Growing retail banking opportunity with launch of new products like two wheeler finance(p.375)
- • Bancassurance income growing at 37% CAGR from ₹51m to ₹96m(p.375)
- • Priority sector lending opportunities with 40% of ANBC lending requirement(p.377)
- • NRI deposit base offering stable funding with growth at 3% CAGR and 24.87% of total deposits(p.375)
- • Improvement in gross NPA from 7.25% to 4.87% providing room for profit recovery(p.376)
- • Expansion in gold loan portfolio(p.395)
- • Growing corporate advances segment(p.395)
- • Expansion of savings deposits(p.396)
- • Capital infusion for growth(p.396)
Threats
- • Rising interest rate impact on net interest income(p.28)
- • Volatility in gold prices affects loan portfolio(p.25)
- • Natural disasters impact operations(p.24)
- • Intense competition from new bank entrants and payment banks(p.26)
- • Regulatory restrictions on branch expansion(p.40)
- • Labour unrest and strike risk(p.37)
- • Priority sector lending obligations(p.25)
- • Regulatory changes and increased compliance costs(p.42)
- • Money laundering and KYC compliance risks(p.42)
- • Cyber security threats(p.40)
- • RBI may recommend mergers which could adversely impact growth and performance(p.46)
- • Consolidation in banking sector could increase competition from larger banks(p.46)
- • Potential violation of OFAC sanctions on customer transactions(p.48)
- • RBI prompt corrective action framework could materially affect business(p.48)
- • RBI guidelines for resolution of stressed assets may impact profitability(p.48)
- • Uncertainty from new taxation system including GST and GAAR(p.47)
- • Financial instability in other emerging markets could harm Indian financial markets(p.49)
- • Indian economic slowdown could adversely affect business and financial performance(p.49)
- • Multiple macroeconomic and political risks affecting India economy(p.49)
- • Decline in India's foreign exchange reserves affecting liquidity and interest rates(p.50)
- • Financial difficulties in Indian financial system could create systemic risk(p.50)
- • Elevated NPA levels in Indian banking system(p.111)
- • Rising competition from NBFCs and fintech companies(p.133)
- • Regulatory changes and compliance burden(p.159)
- • Industry cyclicality and economic slowdown risks(p.108)
- • Deteriorating agricultural sector asset quality(p.133)
- • Stressed assets in industrial sector(p.124)
- • Intense competition from major private and public sector banks(p.171)
- • Regulatory changes and RBI compliance requirements(p.174)
- • Exposure to large single borrowers and concentration risk(p.166)
- • Rising competition from NBFCs and fintech entities(p.171)
- • Potential for increased NPA stress in certain sectors(p.178)
- • Liquidity and funding constraints under Basel III norms(p.177)
- • Restricted ability to pay dividends due to regulatory limits(p.225)
- • High provisions required for non-performing assets(p.232)
- • Exposure to restructured and sub-standard advances(p.251)
- • Concentration risk in top borrowers(p.268)
- • Depreciation in investment values requiring provisions(p.243)
- • Unhedged foreign currency exposure requiring provisioning(p.275)
- • Intensifying competition from public, private, foreign banks and small finance banks(p.378)
- • Further liberalization could increase competition from new private and foreign bank entrants(p.378)
- • RBI licensing of payments banks and small finance banks creating alternative providers(p.378)
- • Volatile interest rates beyond bank control affecting profitability(p.379)
- • Mandatory priority sector lending obligations limiting lending flexibility(p.379)
- • Risk of deposit withdrawal or non-renewal from top 20 depositors(p.378)
- • Regulatory restrictions on lending and dividend payments if capital adequacy falls(p.380)
- • Demonetization and GST implementation slowing economic growth and credit expansion(p.377)
- • High fraud and default risks(p.457)
- • Regulatory scrutiny on compliance(p.433)
- • Declining net interest margin(p.406)
- • Decline in net interest income yield(p.406)
- • Regional concentration risk in southern India(p.402)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| FIH Mauritius Investments Ltd | Promoter | 50.09% | — |
| FIHM (Fairfax India Holdings Limited subsidiary) | Promoter | 50.087% | — |
| Fairbridge India Holdings (FIHM) | Promoter | — | — |
| Fairfax India Holdings Corporation (FIHM) | Promoter | — | 50.09% on a fully diluted basis (26% voting rights) |
| FIH Mauritius Investments Ltd (FIHM) | Promoter | 50.09% | — |
| Fairfax India Holdings Corporation | Parent Company of FIHM | — | — |
| FIHM (Fairfax India Holdings Limited) | Promoter/Marquee Investor | — | — |
| Bridge India Fund | Selling Shareholder | 1.452% | — |
| HDFC Life Insurance Company Limited | Selling Shareholder | 2.348% | — |
| The Federal Bank Limited | Selling Shareholder | 1.617% | — |
| ICICI Prudential Life Insurance Company Limited | Selling Shareholder | 1.767% | — |
Leadership
Rajendran Chinna Veerappan · Managing Director and Chief Executive Officer
Veluthattil Maheswari · Chief Financial Officer
Sijo Varghese · Company Secretary and Compliance Officer
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.
CSB Bank IPO FAQs
What is the lot size of CSB Bank IPO?
The minimum lot size of CSB Bank IPO is 75 shares. One lot costs ₹14,625 at the cut-off price.
When does CSB Bank IPO open and close?
CSB Bank IPO opened for subscription on 22 Nov 2019 and closed on 26 Nov 2019.
What is the listing date of CSB Bank IPO?
CSB Bank IPO listed on 04 Dec 2019.