1. At a Glance – Blink and You’ll Miss the Irony
CSB Bank is trading at ₹432, down 13.6%, while quietly posting ₹15,267 lakh profit in Q3 FY26. Market cap sits at ₹7,487 crore, P/E at a modest ~12×, and ROE around 14%. Sounds reasonable, right? But zoom in and the story gets spicy. CASA has slipped from 32% to 27%, NIM cooled from 5.48% to 5.09%, and asset quality is doing a tiny bhangra with GNPA inching up to 1.96% (Q3 FY26).
Yet, advances jumped from ₹20,000 crore to ~₹24,000 crore in FY24 and deposits raced ahead to ₹29,700 crore. Gold loans dominate at 48% of the book — CSB is basically Kerala’s favourite locker with a banking license.
So what is CSB today? A post-Fairfax turnaround story still sweating at the gym, or a disciplined small private bank priced like it’s already retired? Let’s tear this apart politely… and sarcastically.
2. Introduction – From Church Bells to Cash Registers
Founded almost a century ago, CSB Bank has survived more economic cycles than most fintech founders have had LinkedIn jobs. But history alone doesn’t pay dividends — especially when the bank paid zero dividends despite steady profits.
The real plot twist came in FY19, when Fairfax India walked in like a strict personal trainer, injected ₹12 billion of equity, wiped out legacy NPAs, and told CSB to stop eating junk risk. Since then, profits returned, ROE normalised, and the balance sheet started behaving like a grown-up.
But growth has a cost. As CSB expanded outside Kerala (now 65% branches ex-Kerala), CASA slipped, cost of deposits rose, and NIM softened. The bank
wants to be pan-India, but pan-India doesn’t come cheap.
So here’s the real question: can CSB scale without losing its high-margin gold loan DNA? Or will it dilute itself chasing SME and corporate respectability? Comment section, warm up.
3. Business Model – WTF Do They Even Do?
CSB’s business model is actually very simple — take gold, give loans, sleep peacefully.
- Retail Banking (59%): Gold loans, CASA, personal loans, forex, credit cards. Gold loans are the hero — fast, collateralised, and emotionally secure (Indian aunties approve).
- Wholesale Banking (23%): Corporate lending, supply chain finance, capital markets. Lower margin, higher ego.
- Treasury (14%): SLR, investments, liquidity management — boring but essential.
- SME Banking (4%): Small today, big ambition tomorrow.
CSB doesn’t pretend to be HDFC Bank. It knows its strength lies in secured lending, especially gold. The risk? Over-dependence. If gold prices sneeze or regulation tightens, CSB catches a cold.
So is specialisation smart… or lazy? You decide.
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
Figures in ₹ crore
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,154 | 919 | 1,109 | 25.5% | 4.1% |
| PBT | 205 | 204 | 216 | 0.5% | -5.1% |
| PAT | 153 | 152 | 160 | 0.7% | -4.4% |
| EPS (₹) | 8.80 | 8.74 | 9.24 | 0.7% | -4.8% |
