In Thursday’s trading session, the shares of one of the oldest private sector banks in India surged by 7.07 percent on BSE at Rs. 382.1, despite the promoter selling a 9.7 percent stake worth Rs. 590 crore in the bank via a block deal.
With a market cap of Rs. 6,388.6 crore, at 02:27 p.m., the shares of CSB Bank Limited were trading in the green at Rs. 368.25, up by 3.2 percent, compared to its previous closing price of Rs. 356.85.
What’s the news:
Fairfax India Holdings Corporation announced that its wholly-owned subsidiary, FIH Mauritius Investments Ltd., has offloaded a 9.7 percent stake in CSB Bank, generating gross proceeds totalling Rs. 590 crore (~$70 million).
The purpose of this selling of stake was in order to comply with the dilution requirements of the Reserve Bank of India (RBI).
As of the latest shareholding pattern with the BSE, the promoter FIH Mauritius Investments Ltd. held a 49.72 percent stake in the Kerala-based CSB Bank. Following this stake sale, their ownership will be reduced to 40.02 percent.
Financial & Stock Performance:
In terms of financials, the bank’s interest income stood at Rs. 794.8 crore in Q4 FY23-24, rising by 25 percent YoY from Rs. 636.5 crore in Q4 FY22-23, however, the after-tax profit fell by 3 percent YoY to Rs. 151.5 crore from Rs. 156.3 crore, during the same period.
On a year-on-year basis, the CASA ratio of CSB Bank declined by 5 percent from 32.18 percent in Q4 FY22-23 to 27.2 per cent in Q4 FY23-24.
The bank recorded a stable Net Interest Income (NII) growth of 11 percent on a YoY basis and stood at Rs. 1,476 crore in FY23-24, as against Rs. 1,334 crore for FY22-23.
The stock has delivered positive returns of nearly 31.2 percent in one year but around 12 percent of negative returns year-to-date.
About the company:
CSB Bank Limited, formerly known as The Catholic Syrian Bank Limited, operates in four segment verticals, comprising of SME banking, retail banking, wholesale banking and treasury operations.
Incorporated in 1920, CSB Bank has raised capital of Rs. 409.68 crore through the Initial Public Offering(IPO) during FY19-20 and the shares of the bank were listed in BSE and NSE from 4th December 2019.
Written by Shivani Singh
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