CSB Bank Limited

1.1 Brief History of the Company

Established in 1920 as The Catholic Syrian Bank Limited, CSB Bank Limited had its modest be-
ginning in November 1920 and is currently the oldest private sector bank in Kerala, celebrating
its Centenary Year in 2020. During this century long period, the Bank has grown from strength
to strength, adapting admirably to the far-reaching social, political and economic changes that
have taken place during the period.

It was in the year 1969 that the Bank became a Scheduled Bank, as it was included in the
Second Schedule of Reserve Bank of India Act. In 1972 it came out of its traditional bastion and
opened its first branch in Chembur, Mumbai. “A Class” Scheduled Bank status was attained by
the Banking the year 1975 and it entered the field of International Banking in the same year.
Currently the bank has 417 branches (comprising 3 service branches and 3 asset recovery
branches) and 310ATMs (including onsite and Offsite) spread across 18 states, 2 union territ-
ories. Out of the 432branches (excluding 3 service branches and 3 asset recovery branches).
For efficient administration, the Bank has organized all its branches under 9 Zonal offices. The
Bank delivers its products and services through multiple delivery channels that include
branches, ATMs, internet and mobile banking.

Bank has been rebranded in the year 2019 by change of name from The Catholic Syrian Bank
Limited to “CSB Bank Limited”, to address region and community related perceptional issues
associated with our previous brand name.

The Bank successfully completed its Initial Public Offering (IPO) to the tune of Rs. 409.67 crore
which received an overwhelming response from the investors and the issue was subscribed
overall by 86.92 times. Subsequently, the Bank’s shares were listed on Indian stock exchanges
on 4 December 2019.

Since June, 2009 all our branches have been brought under CBS platform, a software Pro-
gramme named MAARVEL, developed jointly with a reputed software company. Technology
has been leveraged for providing banking convenience to customers and all our branches have
been enabled and included in the RTGS network.

CASA portfolio constitutes29.17% of our total deposits. With the intention of making the right
proposition to the right customer at the right time, tailor made banking products have been de-
signed to cater to the specific banking needs of various sections of the society. The Bank cur-
rently has four principal business areas, namely, (a) SME Banking, (b) Retail Banking, (c) Cor-
porate Banking and (d)Treasury Operations.
1.2 Business process of organization-Products
Products of bank

Personal NRI Business

Account and deposits Account and de- Financial inclu-

posits sion
Loans Loans Agri banking
Insurance Insurance SME banking
Investments Investments Corporate bank-
ing
Forex Forex -

I. Personal products list

Accounts Loans Insurance & Forex

and depos- Investments
its
Savings ac- Gold loan Life insur- Outward re-
count ance mittances
Current ac- Vehicle loan General in- Foreign Cur-
count surance rency Cash
Fixed de- Personal loan Social secur- Integrated
posits ity schemes Treasury
Safe locker MSME loan e-trade -
box
Demat ac- Home loan Sovereign -
count gold bond
Deposits Retail loan -- -
II. NRI Products List

Account and de- loans Insurance Forex

posits & Invest-
ments
NRO account NRI gold Life insur- Remittance
loan ance services
NRE account NRI General Forex rates
vehicle insurance
loan
FCNR Account NRI Social se- Integrated
housing curity treasury
loan schemes
RFC Account NRI e- trade -
property
loan
- Other Sovereign -
NRI loans gold loan

III. Business banking

 AGRI/FIN Bank- SME banking Corporate banking
ing
PMJJBY Term loan Working capital finance
(Pradhan Mantri
Jeevan Jyoti Bima
Yojana

PMSBY (Pradhan Working capital Corporate loan

Mantri Suraksha loan
Bima Yojana)

Government Export finance Term loan

schemes
Subsidy Cash credit /OD Bill finance

Other product and service

INSTA pay (fee collection)

Electricity bill payment

Payment service

Door step banking service

Donation and offerings

Debit card offers

1.3 Customers of company Levels of Operations

Customer is a person who avails any product or service from a organization or a business.
Customers can be classified into,
 Minors
Who has not reached age of 18 years, He needs a local guardian to operate his account.
 Illiterate person
lliterate person is a person who cannot read or write. He operate account using thumb impres-
sions.
 HUF
Accounts has been managed by Karta.
 Partnership Firms
Partnership is the relation between persons who have agreed to share profits of business car-
ried on by all or any one them acting for all. 

 Company Accounts
 Company Act 2013, recognise Company is a legal person with perpetual entity & is distinct
from its members.
 Trusts
Trust may be public charitable trust or private trust (for benefit of private individuals). Trusts
managed by trustees. 
 Clubs and Societies
Society & Clubs are non-profit making organisations and represents a group of persons. These
are normally incorporated under Cooperative Society Act. 
 NRIs
Person who are Indian citizen but not in India for a period of 182 days in previous year.
 Joint accounts
Account which has been shared by two or more individual.

The Bank currently has four principal business areas, namely,

(a) SME Banking,

Loans for small medium enterprise are business loans extended only to medium-sized enter-
prises. These are tailor made to suit the needs and requirements of SMEs.
(b) Retail Banking,
Retail banking also known as consumer banking or personal banking, is the provision of ser-
vices by a bank to general public, rather than to companies, corporations or other banks, which
are often described as wholesale banking.
(c) Wholesale Banking
CSB Bank fulfils business needs of large & mid-size corporates, and business entities of Rs 250
million and more credit requirement under Wholesale Banking category.

(d)Treasury Operations.

Under Treasury Operations, the bank deals with asset-liability management, statutory reserves
management, trading & investment of securities, foreign exchange, and liquidity management
activities. This category is aimed to maintain liquidity requirement to comply with the CRR
(Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio), which are RBI Mandates.
 The company also has a contractual arrangement to distribute life insurance products of HDFC,
Edelweiss Tokio, and ICICI Prudential Life Insurance Company Ltd and general insurance
products of Reliance General Insurance Company Ltd.

1.4 Competitors of Company

HDFC Bank

ICICI Bank

Kotak Mahindra Bank

Axis Bank

IndusInd Bank

Bandhan Bank

IDBI Bank

Yes Bank

AU Small Finance Bank

IDFC First Bank

Federal Bank

City Union Bank

RBL Bank

Equitas Bank

Ujjivan Bank

South Ind Bank

Dhanalaxmi Bank

JK Bank

1.5 Strategies of the Bank

 CSB Bank, formerly known as The Catholic Syrian Bank, may redistribute its branch network in
Kerala, closing some branches where it already has a dense network and adding more in areas
like the northern parts of the state. It also has plans to expand its network across other states
in southern and western India.
 CSB Bank has plans to add another 425 branches.
 Bank has 100 branches in Thrissur district. They plan to close about 40 branches in Thrissur
and spread in Northern Kerala
 CSB Bank also aims to grow its lending to small and medium enterprises.
 Going forward, it expects 30 per cent of its total portfolio will be SME,
 35 per cent gold loans and around 15 per cent retail.
 At the same time, its corporate portfolio will come down to 15 per cent from around 35 per
cent over a period.

1.6 CSR Activity

The CSR policy of the Bank aims to identify and support all projects/programs/subjects under-
taken as part of the Bank’s Corporate Social Responsibilities within the framework of Schedule
VII of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy)
Rules, 2014, as amended. The policy will serve as a guiding document to help identify, execute
and monitor CSR projects in keeping with the spirit of the policy.

1) Sponsorship of education of children of Martyr -Measures for the benefit of armed forces veter-
ans, war widows and their dependents -Local area, Wayanad District, Kerala.
2) Setting up homes for socially and economically backward groups in the society including for
women and orphans-Slum area development -Local area, Thrissur District, Kerala.
3) Guaranteed Emergency Credit Line Scheme (GECL) Relief to all business enterprises/ MSME
sector by providing additional working capital term loan to meet operational liabilities and re-
start businesses in the unprecedented situation COVID-19.
1.7 Export/ Import
o Export/Import Finance

Pre and post shipment financing, forward covers, buyers credit and finance in foreign currency .
o Buyers’/ Suppliers’ Credit
Arrangement of buyers’/ suppliers’ credit through overseas banks/ correspondents to help reduce cost for
importers as per RBI guidelines.
o Letter of Credit
Credit service for importers
1.8 Collaboration and Expansion Plans

Bank was looking to expand its network to north side of Kerala. They also aim to have branch
representation in all district headquarters and semi-urban area.

Currently, as a prelude to the expansion plans, the bank is in the process of establishing bank-
ing kiosks in the rural and unbanked areas. The kiosks would have touch-screen facility and
 would provide information about the weather and commodity/equity updates in the local lan-
guage besides serving as a cash dispenser.

The Catholic Syrian Bank Limited, Northern Zone has inaugurated three branches of CSB Bank,
namely Rohini Sector-7, Okhla-Phase 2, and Shalimar Bagh on 23.10.2020. He has further indic-
ated about the expansion of the Bank in Northern and Eastern region by opening of 50 more
branches.

The proposed branches are identified at areas where there is good demand for Gold Loans,
MSME, Corporate Loans and to extend support to other needy customers. Gold loan is the
unique selling product of CSB Bank Limited with its attractive interest rate, higher LTV (Loan
to Value Ratio) up to 90%, low turnaround time and easy takeover facility from other financial
institutions. The aim of the Bank is to attain a Gold loan portfolio of Rs. 10,000 Cr.

The bank recently also developed an app -- CSB Wink -- allowing customers to open accounts
instantly in a remote manner. CSB Bank is also working on expanding its products suite, ser-
vices, and digital banking platform, with investments in technology aimed at improving cus-
tomer experiences and offering them a range of products tailored to their financial needs.

In order to enhance our existing retail and franchise offerings, we have created digital on-
boarding facilities, via CSB Wink that offers digital account opening, e-wallet facilities, online
FD services, virtual debit cards and will aid in higher deposit.

1.9 SWOT analysis of CSB

Strengths of CSB

 Rising Net Cash Flow and Cash from Operating activity.

 Company with high TTM (Trailing 12 Months) EPS Growth.
 Strong Annual EPS Growth.
 Growth in Quarterly Net Profit with increasing Profit Margin (YoY).
 Company with Low Debt.
 Increasing Revenue every Quarter for the past 4 Quarters.
 Company with Zero Promoter Pledge.
 FII / FPI or Institutions increasing their shareholding.
 Strong Momentum: Price above short-, medium- and long-term moving averages.

Weakness of CSB

 High Interest Payments Compared to Earnings.

 Decline in Net Profit with falling Profit Margin (Quarter on Quarter).
 Promoter decreasing their shareholding.
 Stock is trading at 2.78 times its book value.
 Though the company is reporting repeated profits, it is not paying out dividend.
 Company has low interest coverage ratio.
 The company has delivered a poor sales growth of 4.77% over past five years.
 Company has a low return on equity of 0.84% for last 3 years.
 Earnings include other income of Rs.400.81 Cr.

Opportunities of CSB

 Positive Breakout Second Resistance (LTP > R2).

 Highest Recovery from 52 Week Low.
 Decrease in NPA in recent results.
 RSI (Relative Strength Index) indicating price strength.
 Stocks near 52 weeks high with significant volumes.

Threats of CSB

 Increase in Provision in recent results.

 Companies increasing debt as per recent annual report.