1. At a Glance
Q1 FY26 brought₹118.6 Cr profit, 20% deposit growth, and 31% loan growth for CSB Bank. Asset quality? Stable, withGNPA at 1.84%andNNPA at 0.66%. ROE is a respectable14.3%, but the market still prices it at just1.49x book— cheaper than your local Kerala tea shop’s loyalty card.
2. Introduction
CSB Bank, formerly the Catholic Syrian Bank, has been around since the British Raj decided we deserved savings accounts but not self-governance. Today, it’s a nimble small private sector bank focused on retail, SME, and a very Kerala-flavoured gold loan business. Think of it as your grandmother’s bank that just learned to use UPI and is suddenly growing deposits faster than Instagram followers on a celebrity scandal.
3. Business Model (WTF Do They Even Do?)
- Retail Banking (59%)– CASA deposits, personal loans, gold loans, credit cards, forex.
- Wholesale Banking (23%)– Corporate lending, securitisation, capital markets.
- Treasury (14%)– Investments, liquidity management, forex trading.
- SME (4%)– Business loans, working capital finance.
Revenue streams are split between interest income and other income (fees, forex, trading gains). Asset quality is a key selling point, as GNPAs are well below industry averages.
4. Financials Overview
Q1 FY26 (₹ Cr)
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,041 | 832 | 981 | +25.1% | +6.1% |
| Net Interest Income* | 576** | ~463** | ~515** | +24% | +12% |
| PAT | 118.6 | 113.0 | 190.0 | +5.0% | -37.6% |
| EPS (₹) | 6.84 | 6.53 | 10.98 | +4.7% | -37.7% |
*Estimated from revenue minus
other income.**Approximated using interest income and expense split.
Commentary: Strong YoY growth in top line and steady profitability, but QoQ dip in PAT due to seasonal costs and lower treasury gains.
5. Valuation (Fair Value RANGE only)
Method 1 – P/E
- TTM EPS ₹34.54, applying 12x–14x (small private bank range) → FV ₹415 – ₹485.
Method 2 – P/B
- BV ₹259, applying 1.6x–1.9x (given growth + asset quality) → FV ₹414 – ₹492.
Method 3 – DCF (Earnings Growth)
- Assuming 12% CAGR in earnings for 5 years, COE 14%, terminal P/E 10x → FV ~₹400–₹470.
Educational FV Range (not advice): ₹400 – ₹485. CMP ₹385 is just below lower bound.
6. What’s Cooking – News, Triggers, Drama
- Q1FY26: 20% deposit growth, 31% advances growth.
- Asset quality: GNPA 1.84%, NNPA
