Catholic Syrian Bank (CSB) Limited IPO
(i) They are one of the oldest private sector banks in India with a history of over 98 years and have a strong base in Kerala along with a significant presence in Tamil Nadu, Karnataka, and Maharashtra. It has developed a well recognized and trusted brand in south India, particularly in the states of Kerala and Tamil Nadu.
(ii) It offers a wide range of products and services to our overall customer base of 13 lakh as of March 31, 2019, with a particular focus on SME, Retail, and NRI customers.
(iii) It delivers 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.
(iv) The Bank has a long operating history as a traditional bank, they are currently focusing on the implementation of strategic changes in the business model to function efficiently as a full-service new age private sector bank backed by new marquee investor-FIHM( Prem Watsa, a Candian Billionaire), the Promoter. To this end, they are re-aligning organizational set-up for efficiently driving our operations and business strategy, wherein branches will be responsible only for deposits, cross-selling and customer servicing and all loan products will be driven by dedicated teams, with each business team operating as a profit center.
(v) The major performance highlights for the last three Fiscals are as follows:
a) On the deposits side, while overall deposits grew at a slower pace from ₹ 14911 cr in Fiscal 2017 to ₹ 15123 cr in Fiscal 2019 due to conscious strategy adopted by bank of reducing term deposits and focusing more on CASA, the CASA deposits increased from ₹ 3694 cr as on March 31, 2017, to ₹ 4210 cr as on March 31, 2019, and the CASA ratio improved from 24.78% in Fiscal 2017 to 27.84% in Fiscal 2019, leading to a significant reduction in the cost of deposits from 6.89% in Fiscal 2017 to 5.87% in Fiscal 2019.
b) Advances started growing again from Fiscal 2017. The advances increased from ₹ 8,000 cr in Fiscal2017 to ₹ 10,615 cr in Fiscal 2019. The yield on advances decreased from 11.10% as of March 31, 2017, to 9.85% as of March 31, 2019.
c) The credit to deposit ratio increased from 53.65% in Fiscal 2017 to 70.19% in Fiscal 2019.
d) The gross NPAs decreased to 4.87% as of March 31, 2019, from 7.25% as of March 31, 2017. The net NPAs decreased to 2.27% from 4.12% during the same period, while the provisioning coverage ratio was 65.50%,75.83%, and 78.16% in respect of NPAs (including technical write-offs) as of March 31, 2017, March 31, 2018, and March 31, 2019, respectively.
e) The net interest margin increased from 2.11% in Fiscal 2017 to 2.80% in Fiscal 2019 primarily on account of reduction in our cost of funds and an increase in credit to deposit ratio. The net interest income increased from ₹313 cr in Fiscal 2017 to ₹439 cr in Fiscal 2019.
Objects of the Catholic Syrian Bank (CSB) Limited IPO:
Catholic Syrian Bank (CSB) Limited IPO Details:
| Current GMP: | 57-59 |
| Open Date: | Nov 22 2019 |
| Close Date: | Nov 26 2019 |
| Total Shares: | 21009067 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Building |
| Issue Size: | 405-409 Cr. |
| Lot Size: | 75 Shares |
| Issue Price: | ₹ 193-195 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Dec 04 2019 |
Promoters And Management:
Financials of Catholic Syrian Bank (CSB) Limited IPO:
| Particulars ( in Crs) | 6MFY20 | FY18-19 | FY17-18 | FY16-17 |
| Deposits | 15509.81 | 15123.87 | 14690.65 | 14911.56 |
| Net Advances | 11297.83 | 10615.23 | 9337.36 | 8118.93 |
| Net Interest Income (NII) | 278.9 | 439.95 | 384.81 | 313.6 |
| Non-Interest Income | 84 | 135.92 | 125.42 | 281.2 |
| Operating Profit/(Loss) | 103 | 13.36 | 74.33 | 151.71 |
| Provisions and Contingencies (Other than tax) | 59.3 | 313.69 | 223.69 | 160.63 |
| Profit / (Loss) before Tax | 43.7 | -300.16 | -149.36 | -8.92 |
| Net Profit /(Loss) | 44.27 | -197 | -97.47 | 1.55 |
| Key Performance Indicators | ||||
| Capital Adequacy Ratio (CRAR)% Basel – II | 22.77 | 16.77 | 9.92 | 12.18 |
| Earnings per share | 7.7 | -23.73 | -12.04 | 0.21 |
| Book value per share | 114 | 108.79 | 109.81 | 123.44 |
| Net Interest Margin% | 3.40% | 2.51% | 2.32% | 1.91% |
| Cost-Income Ratio% | 71.54% | 97.68% | 85.43% | 74.49% |
| Return On Assets (ROA)% | 0.49% | -1.13 | -0.59 | 0.01 |
Comparison With Peers:
| Name of the bank | Deposits | Deposit growth (3 years) | Loan book | Loan book growth (3 years) | Interest Income | NIM |
| CSB Bank | 15,123 | 0.71% | 10,615 | 14.71% | 439 | 2.51% |
| DCB Bank | 28,435 | 8.83% | 23,568 | 22.00% | 2447 | 2.52% |
| Federal bank | 1,34,954 | 17.55% | 1,10,222 | 22.60% | 9089 | 1.82% |
| South Indian Bank | 80,420 | 10.29% | 62,693 | 16.25% | 5396 | 0.92% |
| City Union | 38,447 | 8.18% | 32,673 | 8.46% | 3177 | 3.37% |
| Karur Vysya Bank | 59,867 | 5.61% | 48,580 | 8.98% | 5815 | 2.44% |
| Name of the bank | GNPA | N.NPA | ROA | Book Value | P/B | Share Performance in last one year |
| CSB Bank | 4.90% | 2.30% | -1.13% | 108 | 1.80x | 21.87% |
| DCB Bank | 1.84% | 0.64% | 0.92% | 103 | 1.70x | 13.50% |
| Federal bank | 2.96% | 1.47% | 0.78% | 67 | 1.31x | 10% |
| South Indian Bank | 4.99% | 3.40% | 0.26% | 29 | 0.38x | -23% |
| City Union | 2.99% | 1.80% | 1.51% | 65 | 3.30x | 28.91% |
| Karur Vysya Bank | 9.15% | 4.98% | 0.30% | 80 | 0.70x | -28% |
Recommendation on Catholic Syrian Bank (CSB) Limited IPO:
Lead Manager of Catholic Syrian Bank (CSB) Limited IPO:
Registrar of Catholic Syrian Bank (CSB) Limited IPO:
Bid Details of Catholic Syrian Bank (CSB) Limited IPO as on
26-Nov-2019 22:45:01 IST
Total Number of Applications in Retail Category: 9,99,929
Application-wise Subscription in Retail Category: 35.70X
Discussion on Catholic Syrian Bank (CSB) Limited IPO:
82 Comments
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muje allotment nahi mila, lekin abhi tak lien account me Rs. 14625
dikha rahe hai to sir ye amount kab tak release hogi.maine upi se request accept kiya tha… please answer me.
Very good listing gain. Congrats to all. Book profit now.
Issue Price= 195
Listing Price = 275
At 10:00 am = 295
more than 50% gain on listing.
NEW IPO CSB BANK LTD.
LISTING ON:-04-12-2019
SCRIP CODE-542867
SYMBOL-CSBBANK
ISSUE PRICE-195/-
Best of luck for tomorrow listing.
Thanks… Let us hope for the best… 😆 😆
No holding show in my account after allotment but receive email of allotment
Wed morning aayega.
When will the amount be unblocked from account? Unfortunately I was not allotted any shares against my application? Will it be today or tomorrow?
today, it should be released.
Yes the funds were released today evening.
Where to check allotment
https://linkintime.co.in/MIPO/IPO.aspx
dontworry try agin in next ipo
csb bank retail portion over subcribe 36 time when allotment in retail category1 out of 35
4/0 allotment .. i thought ab allotment me bhi corruption hone lg gya 😛
ASBA
4/1 Money debited and remaining 03 amount release.
Good news
Hmmm still spamming with your personal referral below good news?
Where to check allotment status?
Allotment out money deducted from my side
That’s great news, you are a lucky one
You applied in ASBA or UPI method?
where you check allotment status?
Very Tough Chances of Allotment in Next IPO Ujjivan SF Bank
If you can hold the shares for 1 year then you should buy unlisted shares of CSB from UnlistedZone.com:
https://unlistedzone.com/shares/buy-sell-catholic-syrian-bank-unlisted-shares-price-allotment-shareholders/
Please note that Lock-in period for unlisted shares is 1 year hence you won’t be able to sell unlisted shares of CSB before 1 year. Seeing the IPO demand, it looks like a wise decision to buy unlisted shares in just Rs.210-220 range and hold it for 1 year!
Why the lock in period of 1 year? And elaborate how much minimum shares one has to buy at that price?
This is the rule my friend. For every unlisted share, when it lists, the non-ipo shares get locked for 1 year from listing date. You can buy unlisted shares in lot of 100.. so you can buy 100, 200, 500, 1000 shares as per your financial capacity.
Thanks for the info friend, i would like to know whether one can buy 10 shares?
What is latest gmp?
59/61
can you please explain this ??? 59/61
As CSB bank money will be Released on 3rd Dec. Fund Houses are Hesitating to Fund for CSB.
All the Fund Houses Have urged Ujjivan BRLM to delay IPO by a day. Therefter BRLM have delayed IPO to 2nd Dec. Just to make sure Proper Funding for CSB.
Now all the Fund Houses are ready to Fund Money for CSB bank, as now CSB Money will be Released on 3rd and the same will be used for Ujjivan.
Huge Demand for Ujjivan is seen. In a Scene of Liquidity Crunch Fund Houses have asked for more Money.
I am Noticing 20000 CR demand seeing the Premium.
Let PB official announcement and See that Premium is Stable Post Announcement.
On seeing Liquidity Crunch in market.
But My retail friends have Garnered 800 CR till now for this IPO.
It’s coming on 2nd Dec to 4th Dec
Cut of Date: 25th Nov
ROC will give Approval Tomorrow.
What you think now … Apply or not for listing gain?
I have applied. The listing gain of 15-20% may come. Allotment would be very tough.
Incase the HNI and QI are not subscribed fully or undersubscried can the company allot those shares to reatil investors?????
It will be over-subcribed heavely dont worry.
Qub me 100+
HNI me 150 to200 time apply hoga
Perfect Sirji.. Please reply Market Wizard.. Incase happen than?
There is no such case where QIBs and HNIs won’t apply , there is no chance to happen so don’t worry,
QIB apply on last day because of 2 reasons
1) QIBs and HNIs wait for statistics to look at Retail demand
2) QIBs and HNIs mostly borrow heavy sum from others (so by applying on last day of “3 day IPO”, they save interest rate for 2 days for the money borrowed)
If QIBs and HNIs didn’t applied means there is only one case, which is very very very poor retail category demand
Yes
I was just curious to know. Is there a provision of that sort or no
I have applied today for 2 lots ..is thee any chance that people applying on 2 nd day will also get shares as already it is 100 % subscribed ..
It is lottery system irrespetive of when you have applied.
What is gmp for this ipo?
Is applying for more shares improves the chance of allotment? Eg: If over subscription is 2.5 times and I apply for 4 lots, can I get confirm allotment of I (one) lot?
No. Only apply one lot.
CSB Bank
63-65 @Rajkot Low Volume
USFB 11-11.5 Low Trade
RHP is filed today Will be Uploaded Tommorow, ROC and RBI Approval Granted.
Cut of Date: 22nd Nov 2019 For Ujjivan Shareholder Quota.
Those Holding Ujjivan Shares as Per Registrar on 22nd Nov are Beneficiaries of Applying Under USFB Category.
Retail Discount Upto 5%.
PB 35~37
Listing gain possible on this ipo?
Yes 10-20%
Without subscription its only 50%
Pl help us by showing live subscribtion…
LIVE SUBSCRIPTION NOT SHOW WHY ???
Can we apply from Bank ASBA and zerodha separately ?
No only one method or else it will be rejected since the system compares only PAN, meaning there should be only one application per single PAN
*CSB Bank Limited – IPO*
Issue Size: *₹410 cr*
Price Band: *₹193 – ₹195*
_*Apply for 75 equity shares @ ₹195/- per share*_
_*IPO closes on Tuesday, November 26, 2019*_
*Anchor Book (₹184 cr)* had participation from marquee long-only Foreign and Domestic Institutional Investors.
*Anchors for the deal include*
– OMERS
– ICICI Prudential MF
– SBI MF
– Birla MF
– Axis MF
– Sundaram MF
– HSBC Global
– White Oak
– Jupiter
– IIFL AIF
– Birla Life
– Aurigin
– Edelweiss
*Good investment opportunity!*
*Lead Manager: Axis Capital*
S/2 5000
Gmp 80/85
The major performance highlights for the 6 month period ended September 30, 2019:
• The Total Assets (gross) were ₹ 17,755.5 crore.
• The overall deposits were ₹ 15,509.8 crore. The CASA deposits was ₹ 4,371.9 crore
• The advances were ₹ 11,297.8 and the yield on advances was 10.22%
• The credit to deposit ratio was 72.84%. The effective risk weight of standard advances was 39.97%.
• The gross NPAs was 2.86% and the net NPAs was 1.96
. The bank has made a profit of 44 cr in the first 6MFY20.
Ujjivan 9.50/10.50
UjjivanInterest 400/-
CSB 75-78
What do you mean “Ujjivan 9.50/10.50”? rating?
Grey Market Premium
The bank is listing it’s share only due regulatory requirement of RBI.
The bank don’t required funds.
Ohhh this is a interesting news
What is the expected listing gain for this IPO?
15-20%
Nice
Lol it’s you the spammer spamming everywhere in the internet with your referral Code,
Misusing Code to get your personal income from others opening account using your reference, damn you fraud
Dear all
Don’t get trapped by this fraudster
Lol it’s you the spammer spamming everywhere in the internet with your referral Code,
Misusing Code to get your personal income from others opening account using your reference, damn you fraud
Dear all
Don’t get trapped by this fraudster
Key takeaways from CSB Bank catholic ipo meet
*View-
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.
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.
CSB Bank
Many People are spreading negative news as many counters are short.
I repeat Bank has no such news.
Bank is transforming Hence Prem Wasta has boarded train to turn Around.
Those who are short must cover.
Mostly listing at 230-260 depending on Other situations.
Retail is 10% so Allotment is Hard
Its a small IPO anyone can Operate it easily.
No Retail Pressure will b there.
Hence Apply.
Premium may come down, due to less Funding Availability with HBFC. Even Ujjivan will Eat Money.
GMP Rock Solid at 68/-
https://www.cnbctv18.com/videos/economy/we-can-grow-balance-sheet-manifold-with-the-capital-strength-says-csb-bank-ceo-4727321.htm
*We can grow balance sheet manifold with capital strength, says CSB Bank CEO*
Axis Capital Research Report on CSB Bank:
https://d2un9pqbzgw43g.cloudfront.net/main/CSB-Bank-Ltd-IPO-Note_Nov19.pdf
Qib- 75%
HNI- 15%
Retail- 10%
💡 *USFB IPO – Issue Information *(Tentative)*
Issue Opens on: *29 November 2019*
Issue Closes on: *03 December2019*
Issue Type: Book Built Issue IPO
Issue Size: 34,28,57,142 Shares
Face Value: Rs.10/- per Share
Issue Price: *Rs.34 – Rs.35 per Share (Tentative)*
Market Lot: *425 Shares*
Listing At: NSE, BSE
(i) Strong channel network and trusted brand in South India; strong capital base;
(ii) well established SME business;
(iii) a retail offering is driven by strong gold loan portfolio;
(iv) stable and granular deposit base;
(v) professional and experienced management with strong and independent Board; and
(vi) streamlined risk management controls, policies, and procedures.
Good Morning Sir..!!
Should we go for this IPO?
(i) Canadian Billionaire Prem Watsa owned Fairfax India Holdings has a 51% stake in Thrissur based lender Catholic Syrian Bank which he bought last year for a total consideration of around Rs 1,200 crore. The deal happened at a mutually agreed price of Rs 140 per share.
(ii) Prem Watsa CM (born 1950) is an Indo – Canadian billionaire businessman who is the founder, chairman, and chief executive of Fairfax Financial Holdings, based in Toronto. He has been called the “Canadian Warren Buffett.”
(iii) After acquiring 51% stakes in CSB bank, it has become India’s first foreign bank.
💡 *CSB IPO -* Market’s Current Estimates of oversubscription:
RII = 4.50L Forms = *16.09X Applic.* wise (Avg allotment of ~4.66 shares per lot)👈🏻
NII = 18.5K Crs. = ~293.95X
Interest cost @7.50%p.a. for 7days = 28.77paise for 1X
Thus, for NII the costing = 293.95 X 28.77paise = Rs.84.56 per share (= GMP)
And, for RII the costing = 4.66 X 84.56 = Rs. ~394/- (= Kostak)
=======================
*CSB IPO – *GMP Estimated*
*GMP 85 +/- 1*
Gmp 65/70
S/2 4500
Price band will be announced on 19.11.2019
QIB= 75%
HNI= 15%
Retail= 10%
No discount to retail
GMP is 74/76
Opens*:
20/11/19 – Wednesday
*Closes*:
22/11/19 – Friday
*Price Band* :- ₹ 190 to ₹ 200[ not confirmed]
*Discount (Retail & Employees) :-* ₹ 10 on offer price
*Bid Lot* :- Adding Soon
*Shares offered :-* 19,778,298
*Employee Reservation* :- Adding Soon
*Issue Size * :- Approx ₹ 400Crores