CSB Bank Limited (CSBBANK)
₹308.90 -0.69% last close, 16 Oct
Q2 FY27 results
📅 Next results: 23 Oct 2026 (board meeting)CSB Bank Limited's board meets on 23 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q4 FY26, CSB Bank's net interest income was ₹464 Cr (+25.1% year on year, +2.4% on the previous quarter), and net profit ₹202 Cr (+6.3% year on year).
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Net interest income | ₹464 | +25.1% | +2.4% |
| Net profit | ₹202 | +6.3% | +32.0% |
| EPS (₹) | 11.62 | +5.8% | +32.0% |
| Gross NPA | 1.66% | — | — |
CSBBANK delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 45.73% of the CSBBANK shares traded on NSE were taken to delivery, against the stock's own 20-session average of 43.95%. That is close to its usual level.
Delivery in the last 5 sessions: 49.1% · 40.5% · 56.4% · 31.4% · 45.7%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
CSB Bank has issued a formal clarification to the NSE regarding a Livemint report suggesting a potential merger with IDBI Bank following a Fairfax deal. The bank categorically denied the report, stating it has no knowledge of the news item, is not involved in any discussions or negotiations, and holds no undisclosed price-sensitive information. As a result, the bank confirmed it cannot comment on any material financial impact. CSB Bank, with a market capitalization of ₹5,464 crore and backed by Fairfax (40% stake), will continue business as usual.
- Clarification issued on October 15, 2026, responding to NSE query NSE/CM/Surveillance/17717.
- Bank explicitly confirmed zero involvement in negotiations or discussions regarding an IDBI Bank merger.
- Company confirmed no undisclosed events exist under Regulation 30 of SEBI LODR Regulations.
- Promoter Fairfax maintains a 40.0% stake in CSB Bank (Market Cap: ₹5,464 Cr).
CSB Bank Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The bank's Registrar and Share Transfer Agent, MUFG Intime India Pvt. Ltd., confirmed that securities received for dematerialisation were duly processed, verified, and cancelled. Additionally, depository records have been updated within the stipulated timelines. This is a recurring administrative filing and entails no impact on financial or operational performance.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended September 30, 2026
- RTA MUFG Intime India Pvt. Ltd. issued confirmation on October 3, 2026
- Filing certified and formally submitted to exchanges on October 9, 2026
- All received security certificates were verified, mutilated, and cancelled within the prescribed timeframe
CSB Bank reported provisional business updates for the quarter ended September 30, 2026, showing gross advances grew 22% YoY to ₹42,373 crore compared to ₹34,712 crore in the prior year. Growth was strongly led by advances against gold and gold jewellery, which surged 36% YoY to ₹22,301 crore, making up over 52% of total gross advances. Total deposits expanded 18% YoY to ₹46,889 crore, driven by a 22% increase in term deposits to ₹38,000 crore, while CASA deposits grew modestly by 6% YoY to ₹8,889 crore. Sequentially, gross advances and deposits grew 3.7% and 3.2%, respectively.
- Gross advances grew 22% YoY to ₹42,373 crore as of September 30, 2026
- Advances against gold & gold jewellery jumped 36% YoY to ₹22,301 crore
- Total deposits increased 18% YoY to ₹46,889 crore from ₹39,651 crore
- Term deposits grew 22% YoY to ₹38,000 crore, while CASA rose 6% YoY to ₹8,889 crore
CSB Bank has approved the appointment of Mr. Anish Thurthi as an Additional Director (Non-Executive Non-Independent) effective September 25, 2026. Mr. Thurthi is nominated by promoter FIH Mauritius Investments Ltd (Fairfax), which maintains a 40.0% promoter holding in the bank. He brings over 20 years of experience in investment management and M&A, currently serving as a Director at Fairbridge Capital. The Bank also reconstituted key board committees including NRC, Risk Management, and CSR & ESG committees.
- Appointment of Mr. Anish Thurthi as Additional Director effective September 25, 2026
- Nominated by promoter FIH Mauritius Investments Ltd, representing the 40.0% promoter stake
- Candidate brings over 20 years of experience in M&A, deal advisory, and investment management
- Inducted into the Nomination and Remuneration Committee and CSR & ESG Committee effective September 26, 2026
CSB Bank has appointed Mr. Anish Thurthi as an Additional Non-Executive Non-Independent Director effective September 25, 2026. He is nominated by promoter FIH Mauritius Investments Ltd (Fairfax), which holds a 40.0% stake in the bank. Mr. Thurthi brings over 20 years of experience in M&A, investment advisory, and deals, and currently serves as a Director at Fairbridge Capital. Additionally, the bank reconstituted its Nomination & Remuneration, Risk Management, and CSR & ESG committees effective September 26, 2026.
- Appointment of Mr. Anish Thurthi as Additional Non-Executive Non-Independent Director effective September 25, 2026
- Appointee brings over 20+ years of professional experience in M&A and investment advisory
- Nominated by promoter entity FIH Mauritius Investments Ltd (Fairfax owns 40.0% promoter stake)
- Reconstitution of three key Board committees effective September 26, 2026
CSB Bank responded to an NSE clarification query dated September 8, 2026, regarding a media report titled 'Fairfax plans IIFL Finance exit to fund IDBI Bank bid.' The bank stated that it has no awareness of the background or factual correctness of the article. Furthermore, CSB Bank affirmed it is not involved in any negotiations, discussions, or developments referenced in the news item. CSB Bank confirmed there is no undisclosed information that would account for market trading movements.
- Responded on September 9, 2026 to NSE query letter dated September 8, 2026
- Clarified media report from economictimes.com published on September 8, 2026
- Categorically confirmed no involvement in any negotiations or discussions regarding the news item
- Fairfax currently holds a 40.0% promoter stake in CSB Bank
The Reserve Bank of India has granted approval on September 8, 2026, to ICICI Prudential Asset Management Company Limited to acquire an aggregate holding of up to 9.95% of the paid-up share capital or voting rights in CSB Bank Limited. At the bank's current market capitalization of ₹5,481 crore, a 9.95% stake equates to approximately ₹545 crore. The approval is subject to standard regulatory compliance under the Banking Regulation Act, 1949, and RBI Master Directions. This regulatory clearance permits institutional accumulation but does not mandate an immediate purchase by the AMC.
- RBI approval granted on September 8, 2026, to ICICI Prudential AMC
- Approval permits aggregate holding of up to 9.95% of paid-up share capital or voting rights
- Potential maximum stake value is approximately ₹545 crore against current market cap of ₹5,481 crore
- Requires compliance with RBI Commercial Banks Directions dated November 28, 2025
CSB Bank has disclosed the completion of an institutional investor meeting held on September 8, 2026. The virtual one-on-one session was conducted with White Pine Investment Management. The bank confirmed that no unpublished price sensitive information (UPSI) was shared during the discussion. This is a standard statutory disclosure under SEBI LODR Regulation 30(6).
- Meeting conducted on September 8, 2026
- One-on-one virtual meeting with White Pine Investment Management
- Bank explicitly confirmed no unpublished price sensitive information (UPSI) was shared
CSB Bank Limited informed the exchanges that it conducted a one-on-one meeting with InCred AMC on September 8, 2026, in Mumbai. The interaction was held pursuant to Regulation 30(6) of SEBI LODR Regulations, 2015. The bank confirmed that no unpublished price sensitive information (UPSI) was shared during the meeting. This is a routine institutional investor interaction with no direct material financial impact.
- One-on-one institutional investor meeting held on September 8, 2026
- Meeting conducted with InCred AMC in Mumbai
- Bank confirmed no unpublished price sensitive information (UPSI) was shared
Crisil ESG Ratings & Analytics Limited has assigned an independent ESG rating of 'Crisil ESG 72' to CSB Bank Limited via a communication dated September 4, 2026. CSB Bank clarified that it did not solicit or engage Crisil for this rating, and the assessment is based entirely on publicly available information. The disclosure is made pursuant to Regulation 30 of SEBI Listing Obligations and carries no direct financial or operational impact.
- Crisil ESG Ratings & Analytics assigned an ESG score of 'Crisil ESG 72' to CSB Bank.
- The rating was communicated to the bank via letter dated September 4, 2026.
- Bank clarified it did not engage Crisil; the rating was compiled independently from public data.
CSB Bank Limited announced that Mr. Sumit Maheshwari has ceased to be a Non-Executive Non-Independent Director effective September 2, 2026. The departure is due to the completion of the maximum permissible tenure of 8 years under the Banking Regulation Act, 1949. This is a routine statutory governance transition with no operational or financial impact on the bank.
- Mr. Sumit Maheshwari ceased to be Non-Executive Non-Independent Director effective September 2, 2026.
- Tenure ended upon completion of maximum permissible 8 years under the Banking Regulation Act, 1949.
- Cessation took effect at the close of office hours on Wednesday, September 2, 2026.
CSB Bank Limited informed the exchanges that it engaged in an analyst/institutional investor meeting with Persistence Capital on September 2, 2026. The interaction was conducted in a virtual, one-on-one format. The bank explicitly confirmed that no Unpublished Price Sensitive Information (UPSI) was shared during the meeting.
- One-on-one institutional investor meeting held on September 2, 2026
- Interaction conducted virtually with Persistence Capital
- No Unpublished Price Sensitive Information (UPSI) shared as per SEBI LODR norms
CSB Bank Limited announced the reconstitution of its Audit Committee and Corporate Social Responsibility (CSR) Committee effective August 25, 2026, approved at its Board meeting on August 24, 2026. The 4-member Audit Committee continues under Independent Chairperson Ms. Sharmila Abhay Karve, with Mr. D N Narasimha Raju and Ms. Renu Kohli inducted as new Independent members. The 4-member CSR Committee will be chaired by Executive Director Mr. Pralay Mondal. This is a procedural board committee update in line with corporate governance norms.
- Reconstitution of 2 Board committees (Audit and CSR) approved on August 24, 2026.
- Audit Committee reconstituted with 4 members, including 2 newly inducted Independent Directors.
- CSR Committee reconstituted with 4 members, appointing Mr. Pralay Mondal as Chairperson.
- All changes take effect from August 25, 2026.
Shareholders of CSB Bank Limited approved the appointment of M P Chitale & Co, Chartered Accountants, as one of the Joint Statutory Auditors at the 105th Annual General Meeting held on August 21, 2026. The appointment is for a continuous period of 3 years spanning FY 2026-27 to FY 2028-29, concluding at the 108th AGM. The tenure remains subject to specific annual approval from the Reserve Bank of India (RBI) under Section 30(1A) of the Banking Regulation Act, 1949. This represents a standard compliance and governance procedure with no direct operational or financial disruption.
- Shareholders approved the appointment at the 105th AGM held on August 21, 2026
- M P Chitale & Co appointed as Joint Statutory Auditor for a 3-year term (FY 2026-27 to FY 2028-29)
- Tenure extends from the conclusion of the 105th AGM until the 108th AGM
- Subject to annual approval from the Reserve Bank of India (RBI) under Section 30(1A) of the Banking Regulation Act
CSB Bank concluded its 105th Annual General Meeting on August 21, 2026, with shareholders passing all 7 ordinary and special resolutions with requisite majorities. Key approvals included the adoption of FY26 financial statements, continuing material related-party transactions with promoter entity FIH Mauritius Investments Ltd and its affiliate, and the approval of the CSB Bank Employee Stock Option Scheme 2026 (passed with 96.19% votes in favour). In line with RBI regulatory mandates, promoter voting rights were capped at 26% despite their 40.0% equity holding.
- All 7 resolutions passed at the 105th AGM, including approval of CSB Bank ESOS 2026 with 96.19% assent
- Material related-party transactions with promoter entities FIH Mauritius Investments and FIH Private Investments approved with 100% of votes cast
- Promoter voting rights were capped at 26% under RBI Banking Regulation Act directions despite holding 40.0% of paid-up capital
- Meeting was attended by 68 shareholders via video conferencing on August 21, 2026
Financial Performance
Revenue Growth by Segment
Total income grew 37% YoY to INR 1,458 Cr in Q2 FY26. Net Interest Income (NII) increased 15% YoY to INR 424 Cr, while Non-Interest Income surged 75% YoY to INR 349 Cr. Gross Advances grew 29% YoY to INR 34,712 Cr, with the Wholesale and SME segments growing at 33% YoY despite a reduction in the DA portfolio to INR 40 Cr.
Geographic Revenue Split
The bank has a strategic focus on metro, semi-urban, and rural areas, having opened 433 new branches since FY 2020-21. Specific percentage revenue split by region is not disclosed, but the expansion is designed to diversify the legacy Kerala-centric footprint.
Profitability Margins
Net Profit (PAT) for Q2 FY26 stood at INR 160 Cr, up 16% YoY and 35% QoQ. Net Interest Margin (NIM) was 3.81% in Q2 FY26, an improvement of 27 bps over Q1 FY26 but down from 4.30% in Q2 FY25. Return on Assets (ROA) was 1.33%, up 30 bps over Q1 FY26 but lower than the 1.50% recorded in Q2 FY25.
EBITDA Margin
Operating profit grew 39% YoY to INR 279 Cr in Q2 FY26. The Cost-to-Income ratio was 63.86%, showing a slight improvement (decrease) compared to Q2 FY25 and Q1 FY26, despite high non-staff expenses and technology investments.
Capital Expenditure
The bank has made significant investments in its CORE banking platform (Flexcube) and surrounding digital systems. While specific total CapEx INR is not disclosed, the bank opened 433 branches since FY21 and plans continued expansion to reduce reliance on gold loans.
Credit Rating & Borrowing
Crisil Ratings assigned 'Crisil A/Stable/Crisil A1+' on debt instruments. Capitalization is healthy with a Tier-1 capital ratio of 20.59% and an overall Capital Adequacy Ratio (CAR) of 22.46% as of March 31, 2025 (20.99% in Q2 FY26).
Operational Drivers
Raw Materials
For CSB Bank, 'raw materials' are customer deposits and equity capital. Deposits grew 25% YoY to INR 39,651 Cr. Retail deposits are a core strength with a renewal rate exceeding 88%.
Import Sources
Not applicable for banking operations; sourcing is domestic through a branch network of over 433 new locations across India.
Key Suppliers
Not applicable for banking; however, technology partners include Oracle (Flexcube) and insurance partners include Aditya Birla Health Insurance Co. Limited.
Capacity Expansion
The bank has expanded its physical capacity by opening 433 branches since FY 2020-21. It aims to scale its non-gold loan book (Wholesale, SME, and Retail) to balance the portfolio by 2030.
Raw Material Costs
Cost of deposits and interest expense are the primary costs. While specific cost of funds % is not explicitly stated for Q2 FY26, the NIM compression from 4.30% to 3.81% YoY indicates rising interest costs and competitive pricing in deposit mobilization.
Manufacturing Efficiency
Operational efficiency is measured by the Cost-to-Income ratio, which stood at 63.86% in Q2 FY26. The bank is transitioning from legacy systems to modern platforms to improve transaction processing speed.
Logistics & Distribution
Distribution is handled through its physical branch network and digital lending platforms, which are being upgraded to provide paperless solutions for MSMEs.
Strategic Growth
Expected Growth Rate
25-30%
Growth Strategy
Growth will be driven by the 'SBS 2030' roadmap, focusing on building a granular liability franchise (CASA), expanding the wholesale/SME book (currently growing at 33%), and scaling the retail segment using new digital systems. The bank aims to sustain fee income at 19-20% of total income through bancassurance and processing fees.
Products & Services
Gold loans, MSME loans, Corporate banking (Mid-market/Commercial), Credit cards, Health insurance (via Aditya Birla), Life and General insurance, and Transaction banking (CMS, NACH, Virtual accounts).
Brand Portfolio
CSB Bank, SBS 2030 (Strategic Roadmap).
New Products/Services
Recently launched credit cards and select consumer retail products; digital lending solutions for MSMEs are expected to drive future market share gains.
Market Expansion
Aggressive expansion into metro, semi-urban, and rural areas with 433 branches added recently to diversify the geographic base beyond Kerala.
Market Share & Ranking
Not disclosed; however, the bank is growing faster than the system (system deposit growth was 10.83% as of Jan 2025).
Strategic Alliances
Partnership with Aditya Birla Health Insurance Co. Limited for retail health products and other leading insurance providers for life and general insurance.
External Factors
Industry Trends
The Indian banking sector is seeing a shift toward digital lending, AI, and 'Banking-as-a-Service' (BaaS). System-wide credit and deposit growth are improving, but private banks are outperforming public sector banks in capital accumulation.
Competitive Landscape
Faces aggressive competition from NBFCs in gold loans, peer banks in deposit mobilization, and larger banks in the MSME/Retail segments.
Competitive Moat
Moat includes strong backing from Fairfax (40% stake), a high-yield gold loan franchise with minimal slippages, and a stable retail deposit base (88% renewal). These are sustainable due to high capital adequacy (20.99%) providing a buffer for growth.
Macro Economic Sensitivity
Sensitive to interest rate cycles; the bank monitors 'Delta EVE' and 'Delta NII' on a quarterly basis to manage interest rate risk in the banking book (IRRBB).
Consumer Behavior
Increasing demand for digital-first, paperless lending solutions, particularly in the MSME and retail health insurance segments.
Geopolitical Risks
SME growth has been slowed by 'ecosystem related issues' and 'exports coming under pressure,' indicating sensitivity to global trade dynamics.
Regulatory & Governance
Industry Regulations
Adheres to the Banking Regulation Act, RBI Master Directions on Investment Portfolio (effective April 2024), and IRRBB guidelines. It maintains a Provision Coverage Ratio (PCR) of 67.19% (excluding write-offs).
Environmental Compliance
The bank has a policy not to finance borrowers producing ozone-depleting substances or using chlorofluorocarbons.
Taxation Policy Impact
Not explicitly detailed, but the bank follows standard Indian corporate tax norms for banking companies.
Legal Contingencies
The bank handles queries from Law Enforcement Agencies regarding Anti-Money Laundering (AML) compliance; specific pending court case values in INR are not disclosed.
Risk Analysis
Key Uncertainties
High staff attrition (46%) poses a risk to operational continuity. Potential for slippages in the new non-gold loan book (Wholesale/SME) as it becomes a more material part of the portfolio.
Geographic Concentration Risk
Historically concentrated in Kerala, though 433 new branches are diversifying this footprint.
Third Party Dependencies
High dependency on technology providers for CORE banking and strategic insurance partners for fee income (Bancassurance).
Technology Obsolescence Risk
Mitigated by the recent transition from legacy systems to the modern Flexcube platform and surround systems.
Credit & Counterparty Risk
Gross NPA is 1.33% and Net NPA is 0.52% as of Q2 FY26. The bank maintains an accelerated provisioning policy, including 100% provision for credit card NPAs after 90 days.
