CSB Bank IPO opens today: All you need to know
The IPO of CSB Bank, formerly known as Catholic Syrian Bank and one of the oldest private sector banks in India, opened today for subscription. CSB Bank IPO will close on November 26 (Tuesday). The Bank has a strong base in Kerala along with a significant presence in Tamil Nadu, Karnataka and Maharashtra. The IPO price band has been set at Rs 193-195 per share. The bank primarily focuses on small businesses, retail and NRI customers and has four main areas of operations—SME banking, retail banking, wholesale banking and treasury operations.
Here are the CSB bank IPO details that you need to know before subscribing:
CSB share price: The lender has fixed the price band of its IPO at Rs. 193-195 a share, aiming to mop up Rs. 410 crore from the issue. Its existing investors include HDFC Standard Life Insurance Co. Ltd., ICICI Lombard General Insurance Co. Ltd., ICICI Prudential Life Insurance Company Ltd. and The Federal Bank Ltd.
Allotment and Listing: CSB Bank shares will be listed on both BSE and NSE. The tentative date for share allotment finalization is December 02, 2019 and listing date is December 4, 2019, according to brokerages.
Bank profile: CSB Bank reported a profit of Rs 44.27 crore in the six-month period ended September 2019 while it had posted a loss of Rs 65.69 crore in FY19 against loss of Rs 127.09 crore in FY18. Net interest income for the first half of FY20 stood at Rs 279.52 crore, down from Rs 439.95 crore in FY19.
Risk Factors: Bank has regional concentration in Southern India, especially Kerala. Any adverse change in the economic, political or geographical conditions of Kerala and other states in southern India can impact bank’s results of operations.
CSB Bank has reportedly done well in its first phase of transformation over 2-3 years reducing the influence of unions/a religious institution, rationalizing branches/employees and turning it from a capital-starved bank into a capital-excess bank after on-boarding investor-cum-promoter Fairfax.
