Buy CSB Bank; target of Rs 300: ICICI Direct

ICICI Direct's research report on CSB Bank

CSB Bank is a south based private sector bank with Kerala contributing ~30% of total advances. Changed strategy in various aspects of lending have led to a transformation and improved performance in the past few years. Gold, SME are key lending segments comprising ~45%, ~12%, respectively, of the book • Liability franchise is healthy with loyal customer base of ~21 lakh.

Outlook

Thus, we retain our BUY rating on the stock. CSB bank is expected to deliver credit growth higher than industry with RoA of ~2%+. Rolling to FY25E, we value CSB Bank at ~1.3x FY25E ABV with a revised target price of Rs 300 vs. Rs 275 earlier.

For all recommendations report, click here