CSB Bank - Core Focus Towards Creating A Well-Diversified Universal Bank: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We met the management of CSB Bank, in order to have an understanding of its –business transformation journey post-acquisition of stake by the new promoter group,digital and technological initiatives undertaken by the bank,underwriting process andimpact of the Reserve Bank of India’s circular on risk weight increase on the bank’s overall strategy with respect to exposures and pricing.The core focus of CSB is towards creating a well-diversified universal bank that offers the entire suite of products and services to customers. Post the technological up-gradations, the bank expects to be one of the best in the industry in terms of:technology stack being used,improvement in the ability to launch newer versions of various products andimprovement in the entire customer journey - right from initiation at the bank to disbursal of loan.The bank has a robust underwriting process, whereby each loan proposal is evaluated at various levels by credit committees based on the overall exposure limit.The impact of increase in risk weights by the RBI on the bank’s CET-1 is expected to be much lower compared to the accretion of H1 FY24 profits to its CET-1, thus making the net impact positive. CSB Bank is strongly capitalised currently with capital adequacy ratio of 23.96% (comprising 22.56% tier I capital) and so does not require to raise equity capital at least for the next 2-2.5 years. The management continues to hold the loan growth guidance in the range of 25-30% for FY24. With all the digital and technological initiatives in place, return on asset is expected to be ~1.5-1.8%, supported by credit growth and improved cost ratios. Credit cost for FY24 is expected to be 10-20 basis points. In the long run, credit cost is expected to remain ~40- 50 bps. Currently, CSB is trading at 2.2 times its trailing adjusted book value of Rs 187..Click on the attachment to read the full report:.M&M - Well Poised To Outperform Across All Its Verticals: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

CSB Bank - Core Focus Towards Creating A Well-Diversified Universal Bank: Nirmal Bang

Gold loan book will continue to dominate loan mix till FY25

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

CSB Bank - Core Focus Towards Creating A Well-Diversified Universal Bank: Nirmal Bang

Gold loan book will continue to dominate loan mix till FY25

Choose a plan

Follow Us

DOWNLOAD THE APP