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:
|Open Date:||Nov 22 2019|
|Close Date:||Nov 26 2019|
|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 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|
|Net Interest Income (NII)||278.9||439.95||384.81||313.6|
|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%|
|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|
|South Indian Bank||80,420||10.29%||62,693||16.25%||5396||0.92%|
|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|
|South Indian Bank||4.99%||3.40%||0.26%||29||0.38x||-23%|
|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