Valuestocks4u

CSB

                                                     CSB BANK-IPO

POSITIVE  SIDE:

CSB Bank provides products and services primarily through an extensive physical network of branches and ATMs. It operates in 16 States and four Union Territories in India, reaching 1.3 million customers through 414 branches (excluding three service branches and two asset recovery branches) and 277 ATMs, as on March 31, 2019.

STRONG  SME  CONTRIBUTION

In total loans SME customers accounted for 43%, 37%, and 32% as on March 31, 2017, March 31, 2018, and March 31, 2019, respectively.

STRONG  GOLD  LOAN PORTFOLIO

Gold loans constituted a major portion of advances, contributing 24%, 26%, and 31% of total advances as on March 31, 2017, March 31, 2018, and March 31, 2019, respectively.

RISK(NEGATIVE SIDE).

GROSS  NPA

  Gross NPAs represented 7.25%, 7.89%, and 4.87% of total advances as on March 31, 2017, March 31, 2018, and March 31, 2019, respectively.

BANK CONCNTRATING  BUSINESS ONLY  IN  SOUTH  INDIA.

Any adverse change in the economic, political, or geographical conditions of Kerala and other states in southern India can impact results of operations. Additionally.

MORE  CONCENTRATION  ON  GOLD  LOAN

 MAJOR BUSINESS  COMES  FROM GOLD LOAN, IF  GOLD  PRICE  WILL EFFECT ADVERSELY  BUSINESS WILL  BE  IN  RISK.

                                                      VALUEATION

WITH A  INTEREST  INCOME OF  732.3  CRORE ,  CSB  REPORTED A NET PROFIT  OF  44.27(LAST  2  YEARS  REPORTED  LOSS)  CORE AND  A EPS OF  3.86 .

CURRENTLY   CSB BANK’S  LOWER PRICE  BAND IS AROUND  50 PE X  ,2.2 X P/BV   WHICH IS  HIGHER TO PEER BANKS LIKE  FEDERAL  BANK  AND DCB.

PEER  VALUATION

FEDERAL  BANK (CMP 88)    11.19  PE , 1.27 X P/BV.

DCB                      (CMP 176)   15.4 PE ,  1.82X P/BV     .

KTKBANK             (CMP 74)      4.29 PE , .38 X P/BV

                       VALUATION PART    CSB  IS  EXPENCIVE   THAN  PEER  GROUP.

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study.

* Can expect listing  gain  dont hold or fresh  buy not entertain .expecting below 200 level after listing  .