Buy CSB Bank; target of Rs 380: ICICI Direct

ICICI Direct's research report on CSB Bank

CSB Bank is a south based private sector bank with Kerala contributing ~50% of the total business. Changed strategy in various aspects of lending has led to transformation and improved performance in the past few years. Gold, SME are key lending segments comprising 36%, 13%, respectively, of book Liability franchise is healthy with loyal customer base of ~17 lakh

Outlook

We retain our BUY rating on the stock We value CSB Bank at ~2.6x FY23E ABV and keep our target price unchanged at Rs 380.