14-Oct-2026 19:13:37
ANAND RATHI SECURITIES ON CSB BANK ; IDBI–FAIRFAX DEAL
• Government approved Fairfax acquisition of 60.72% stake in IDBI Bank for ₹52,878 crore, implying ₹81/share; transaction remains subject to RBI and CCI approvals. • Anand Rathi sees a reasonable possibility of CSB Bank eventually merging with IDBI Bank, though no swap ratio is factored in due to lack of clarity. • Pro forma merged entity could have ~3,105 branches, around 3.6x CSB Bank’s standalone network. • CASA ratio could improve to ~44% versus ~19% for CSB, while cost of funds could fall by ~130 bps to ~4.5%. • Combined entity would also benefit from strong capital position and clean asset quality, with NNPA at ~0.2% and PCR at ~92%. • Merger could materially strengthen CSB Bank’s scale, funding profile and competitive positioning. • Key risks include CBS migration, wage harmonisation, cultural integration and branch rationalisation, which could pressure growth and cost ratios in the near to medium term.
CSB BANK LIMITED