Block deal today: CSB Bank shares in focus as promoter may offload 9.72% stake

Shares of CSB Bank Ltd are in focus on Thursday morning on report promoter FIH Mauritius Investments Ltd, which owned 49.72 per cent in the Kerala-based private lender as of March 31, could offload 9.72 per cent stake via block deal today.

FIH Mauritius Investments is likely to raise Rs 595 crore through block deal at floor price of Rs 352.40 per share, which is at 1 per cent discount to the prevailing market price, a CNBC-Awaaz report citing sources suggested.

The promoter, as per the report, would be selling 1.68 crore shares through the block deal for which IIFL is the broker. FIH Mauritius would own 40 per cent stake in CSB Bank post the stake sale, it suggested.

Post its March quarter results, the CSB Bank management stated that it would not compromise on growth for margin and that it would not shy away from doing business at lower yield if it happens to be franchise business. Cost of deposits may rise further by another 10 bps and peak out, the management suggested as it gave net interest margin (NIM) guidance of 4.5-5 per cent, YES Securities noted in a recent note.

The promoter of CSB Bank had received approval from the RBI to retain a 26 per cent stake in the lender, instead of 15 per cent as advised by the central bank earlier, CSB said in November 2023, CNBC-Awaaz noted.

For the March quarter, CSB Bank logged a 3 per cent fall in its profit at Rs 151 crore against Rs 156 crore in the year-ago quarter. Its total income rose to Rs 991 crore from Rs 762 crore a year ago.