CSB Bank to open 425 branches in 5 years

The Kerala-based CSB Bank Ltd., which is going for an initial public offer (IPO) aggregating up to Rs 410 crore from November 22, plans to increase its presence across the country and to focus on SME, agricultural and retail loans and beef up its NRI deposit base as part of strategy for future growth.
MD and CEO C V Rajendran said the bank with majority of branches in Kerala and Tamil Nadu will increase its presence in key geographical locations such as Maharashtra, Gujarat, Andhra Pradesh, Punjab, Telangana and Karnataka. `` We plan to open 425 branches in the next five years,’’ he said at a media conference here on Thursday. The bank currently has 412 branches.

At the same time the bank will re-align its branches in Kerala by reducing the concentration of branches in its home town Thrissur and opening new ones in north Kerala.

The bank which received a capital infusion of over Rs 1200 crore last year from the marquee investor Fairfax India which now has 50.1% share, has already started focusing on loan products that gives better yield in sectors like gold , MSME, retail and agriculture.

``There will be a dedicated SME and MSME team to drive further penetration, separate vertical for agriculture-based loans besides focus on retail loans, two wheeler loans, loans against property and personal loans etc.,’’ he said

Out of the total 388 SME cluster areas spread across India, the bank has presence in 166 of them. `` We intend to expand our SME business in the remaining clusters specifically in the states of Tamil Nadu, Andhra Pradesh, Telangana and Gujarat.’’

The bank which has reduced net NPA to 2 % from 4.1% in FY17, is also aiming at raising the share of NRI deposits which currently stands at 25% of total deposits. `` We will have a separate team for NRI products and hopes to tap the NRI customer base in Gujarat and Punjab besides entering into strategic partnerships to acquire, engage and service NRI customers in the Gulf region.’’

The IPO which closes on November 26 comprises fresh issue of Rs 24 crore and a sale of up to 19,778,298 equity shares by the selling shareholders at a price band of Rs 193-195 per equity share of face value of Rs 10 each aggregating Rs 385 crore.