CSB Bank soars 7% after promoter likely sells 17 mn shares via block deal

Shares of CSB Bank surged up to 7.3 per cent at Rs 382 per share on the BSE in Thursday’s intraday trade. The stock is trading near its 52-week high of Rs 421.95 touched on January 1, 2024. The share had hit a 52-week low of Rs 279.30 on June 30, 2023.

According to reports, FIH Mauritius Investments, a promoter of CSB Bank, reportedly sold a 9.7 percent stake in a block deal valued at Rs 595 crore on Thursday. 

Approximately 17 million shares were exchanged on the exchanges at an average price of Rs 353 per share, representing a slight discount of nearly 1 percent from the previous closing price.

As per the latest shareholding data, the promoter currently holds a 49.72 percent stake in CSB Bank. Following the stake sale, this holding will decrease to 40 percent.

CSB offers SME banking, retail banking, corporate banking, and treasury operations.

CSB Bank Ltd reported a 3.1 per cent year-on-year decline in net profit to Rs 151.5 crore for the fourth quarter ending March 31, 2024, compared to Rs 156.4 crore in the same period last fiscal year. 

The bank's net interest income (NII) rose by 11 per cent to Rs 387 crore from Rs 349 crore in Q4FY23. However, the gross non-performing assets (GNPAs) increased to 1.47 per cent in Q4FY24 from 1.22 per cent to Rs 361 crore

At 01:49 PM; the shares of the company were trading 2.87 per cent lower at Rs 367.10 per share on the BSE. By comparison the BSE Sensex was up by 0.43 per cent at 79,010 levels.

The share price is trading at a price to earnings valuation of 10.92 and an earnings per share of Rs 32.67.