CSB Bank jumped nearly 8 percent on Thursday, October 27, after the private lender reported a marginal uptick in net profit at ₹120.55 crore on growth in net interest income for the quarter ended September 2022.
During Thursday’s trade the stock opened at a price of Rs. 233 per share closely against the previous close of ₹229.25 and rallied further to touch and intraday high of Rs. 247.50. However, the stock failed to hold on to this rally and was trading at ₹231.30, up by 0.89 percent at 11:15 am on the NSE.
The stock touched a 52-week-high of Rs. 314.05 on October 26, 2021 and a 52-week-low of Rs. 178 on June 21, 2022, indicating that at the current level, the stock is trading at 34.3 percent percent above its 52-week low and nearly 28 percent below its 52 week high.
The stock has returned over 8 percent to its shareholders in past one month. In last six months, the stock gave a positive return of almost 9 percent, however, it has shown a decline of nearly 20 percent in the past one year.
On Thursday, Maybank Securities Pte Ltd acquired 26,39,673 equity shares (or 1.5% stake) in the private sector lender via open market transactions at an average price of ₹232.3 per share, reported Moneycontrol.
Apart from this bulk deal, SBI Mutual Fund on October 21 had acquired additional 1.78 percent shareholding in the bank, raising total stake to 7.21 percent from 5.42 percent earlier.
For the quarter ended September 2022, the private lender reported a marginal uptick in net profit at ₹120.55 crore on growth in net interest income. The bank had posted a net profit of ₹118.57 crore in the year-ago period, reported ET.
Total income of the bank rose to ₹600.12 crore from ₹555.64 crore in the same period last year. The asset quality of the bank improved substantially as gross non-performing assets (NPAs) fell to 1.65% of gross advances by the end of September 2022 from 4.11% a year ago. Net NPAs too declined to 0.57% from 2.63%, the official report stated.
Domestic brokerage house Edelweiss Wealth Research has given a ‘ BUY’ call on CSB Bank with a target price of ₹340 per share, reported ET.
CSB Bank continues to have industry-leading margins, strong return ratios and robust asset quality. With credit growth expectation of more than 20% and stable asset quality, we expect a re-rating, it said.
Another domestic brokerage ICICI Direct maintained its ‘ BUY’ rating on the stock with a revised target price of ₹275 from ₹250 earlier. “CSB bank is expected to deliver a credit growth higher than industry with RoA of 1.5%” it added.
CSB Bank Ltd. is a banking company established in 1920, with a market capitalization of ₹3,977.16 crore. The Bank successfully completed its Initial Public Offering (IPO) to the tune of Rs. 409.67 crore which received an overwhelming response from the investors and the issue was subscribed overall by 86.92 times. Subsequently, the Bank’s shares were listed on Indian stock exchanges on December 4, 2019, its website shows.