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CSB Bank gains after RBI lifts restriction on opening new branches

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CSB Bank rose 1.01% to Rs 195.10 after the Reserve Bank of India lifted the regulatory restriction on the bank with respect to opening new branches.

The Reserve Bank of India (RBI) has lifted a restriction it has imposed on CSB Bank on opening new branches in view of the delayed initial public offering (IPO).

The bank, in a regulatory filing on Tuesday said that the regulatory restrictions by RBI on opening new branches, through their letter in 30 January 2015, has been lifted with effect from 10 January 2020. The general permission to open new branches was withdrawn in 2015 in view of the delayed IPO of shares of the bank, and it was not permitted to open any new branches without prior approval of RBI.

"Accordingly, the bank can currently open branches under the general permission of RBI for all banks subject to the condition that the bank should ensure that atleast 25% of the total number of banking outlets opened during a financial year are opened in un-banked rural centres, which is applicable for all banks, as part of the general permission," CSB Bank said in a statement after trading hours on Tuesday.

Shares of CSB Bank entered stock exchanges on 4 December 2019. The stock listed at Rs 275, a premium of 41.02% over the IPO price of Rs 195. It ended 53.90% higher at Rs 300.10 on the listing day.

The stock has corrected 29.05% from its listing price of Rs 275. It is trading near its IPO price of Rs 195.

CSB Bank reported a net profit of Rs 44.27 crore on a net interest income of Rs 279.52 crore for the six months ended on 30 September 2019.

CSB Bank, formerly known as The Catholic Syrian Bank, is one of the oldest private sector banks in India with a history of over 98 years and a strong base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra with an overall customer base of 1.3 million end September 2019. The bank is primarily focused in the states of Kerala and Tamil Nadu.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 15 2020. 11:01 IST