How to check the balance sheet of Catholic Syrian Bank?

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How to check the balance sheet of Catholic Syrian Bank?
The Catholic Syrian Bank, one of the oldest private sector banks in India, now popularly known as CSB is going for IPO (Initial Public Offering) on Friday, 22 November 2019. With the shares of the bank going for subscription, the investors are keen to know how to check the balance sheet of Catholic Syrian Bank and how the bank is performing in terms of its annual profits and losses.
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About Catholic Syrian Bank

CSB has its strong roots in Kerala and enjoys a considerable presence in the southern states of India including Tamil Nadu, Karnataka and Maharashtra. The main focus of CSB is on retail, SME and NRI customers. The customer base of the bank is around 13 lakh. Though the bank is doing reasonably well which justifies buying its shares, one downside investors note about this bank is its regional concentration in South India. This fact can impact the results of the bank’s operation if any adverse changes happen in the geographical, political and economic conditions of Kerala and the other three states where it is concentrated.

CSB and its IPO

The IPO of the CSB is open for the public from November 22, 2019. The subscriptions will be closed on November 26, 2019.

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The bank has proposed to sell 2,10,21,821 shares within the price band of Rs 193-195. The present decision of the bank will put about 1.98 crore shares for sale and the remaining will be offered through fresh equity. The bank aims to mobilize around Rs 409 crore via the issue.

The bank has designated three fourths of the shares under offer for QIBs (qualified institutional buyers) while around 15 per cent shares will be allotted for non-institutional investors. The remaining shares will be available for purchase by retail subscribers.

Following the IPO, the promoter shareholding in the company will come down to 49.7 percent from the present 50.1 per cent.

Summary of the balance sheet of CSB

CSB reported a total income of Rs 1,617.50 crore in FY17, Rs 1,422.27 crore in FY18, and Rs 1,483.43 crore in FY19. The bank sustained a net loss of Rs 57.99 crore, Rs 127.09 crore and Rs 65.69 crore, in these three financial years respectively.

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For the first half of FY 20, CSB reports a total income of Rs 816.71 crore with a profit of Rs 44.27 crore. Though the return on net worth of CSB from FY17 to FY19 was not that encouraging, the bank reported an EPS of Rs 3.86 for the first half of FY20.

Final word

Market experts say that the issue has been priced aggressively. Brokerage firms say that CSB performed well during the first phase of its transformation during the past two years. However, during the second phase of the developments wherein the bank has to focus on its growth will be really challenging.

Experts advise that for listing gains as well as for long term investment, subscribing to the shares of CSB is recommended.



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