CSB Bank Ltd. (CSBBANK) AI Stock Analysis

• Market Cap: ₹67.75B
• Dividend Yield: N/A
• Average Volume (3M): 27.12K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.40
• Revenue Growth: 32.90%
• EPS Growth: 12.28%
• Country: IN
• Employees: 7,860
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 8.80
• Shares Outstanding: 173,485,820
• 10 Day Avg. Volume: 18,608
• 30 Day Avg. Volume: 27,116
• PEG Ratio: 1.84
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -0.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹420.00
• Price Target Upside: -17.01% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹400.00 ▼(-20.96% Downside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is driven mainly by mixed financial performance: healthy revenue growth and operating margins are offset by negative operating/free cash flow and higher leverage. Technicals further pressure the score due to the stock trading below key moving averages with weak momentum indicators. Valuation provides partial support via a modest P/E.

Positive Factors

Revenue Growth

Sustained high revenue growth implies expanding loan and fee income streams, supporting scale benefits and better absorption of fixed costs. Over 2-6 months, this helps build a larger interest-earning asset base, diversifying NII and strengthening revenue resilience versus peers.

Strong Operating Margins

Elevated gross and operating margins reflect efficient cost management and pricing power in lending/transaction businesses. Structurally, higher margins provide buffer against funding cost increases and credit provisions, preserving profitability through medium-term cycles.

Solid ROE and Equity Position

A mid-teens ROE shows effective use of shareholder capital and supports internal capital generation. A stable equity ratio provides a capital buffer for loan growth and loss absorption, enabling continued credit origination without immediate dilutive capital raises.

Negative Factors

Negative Cash Flow

Persistent negative operating and free cash flows limit the bank's ability to self-fund asset growth and meet liquidity needs. Over months, this increases reliance on wholesale funding or equity, raising funding costs and vulnerability to market stress.

Elevated Leverage

Higher leverage amplifies balance-sheet risk and sensitivity to credit losses or NIM compression. Structurally, a 1.23 debt/equity ratio narrows the buffer for unexpected provisions and may force tighter lending or capital actions to preserve regulatory and solvency metrics.

Falling Net Margin

A declining net margin signals rising costs, provisioning or margin pressure that erodes retained earnings. Over the medium term, this weakens internal capital accumulation and limits capacity to invest, compete on pricing, or absorb credit shocks without external capital.

CSB Bank Ltd. Business Overview & Revenue Model

Company Description

CSB Bank Limited provides various banking products and services for small and medium enterprises, retail, and NRI customers in India. It operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company accepts various deposits products that include savings accounts, NR accounts, fixed deposits, recurring deposits, corporate salary, and current accounts, as well as products for NRI customers; personal and business loans, including loans against gold jewelry, two wheeler and motor vehicle loans, housing loans, loan against property and overdrafts on mortgage/hypothecation/pledge, small business loans, and agricultural loans; and microfinance. It also offers demat services; banking services to financial institutions, such as non-banking financial companies, banks, insurance companies, mutual funds, brokers, etc.; cash management and trade finance services; digital banking services; statutory reserves and asset liability management, liquidity management, investment and securities trading, and money market and foreign exchange services; sovereign debt instruments investment services; commercial papers, mutual funds, certificates of deposits, bonds, and debentures; remittance services; life and non-life insurances; and payment services, as well as debit cards. In addition, it provides agri-banking services; and corporate lending services. As of March 31, 2021, the company operated 518 branches, which included 3 service branches, 3- asset recovery branches, and 318 ATMs. The company was formerly known as The Catholic Syrian Bank Limited and changed its name to CSB Bank Limited in June 2019. CSB Bank Limited was incorporated in 1920 and is headquartered in Thrissur, India.

How the Company Makes Money

CSB Bank generates revenue through multiple streams, primarily from interest income earned on loans and advances provided to customers. As a traditional bank, it collects deposits from individuals and businesses, which it then lends out at higher interest rates, creating a significant spread. Additionally, CSBBANK earns fees and commissions from various services, including account maintenance, transaction fees, and charges related to credit and debit card services. The bank also benefits from wealth management and investment advisory services, contributing to its overall earnings. Partnerships with fintech companies and other financial institutions enhance its service offerings and market reach, further driving revenue growth.

CSB Bank Ltd. Financial Statement Overview

Summary

Income statement strength (revenue growth and solid gross/EBIT/EBITDA margins) is tempered by a declining net profit margin. Balance sheet leverage is higher (debt-to-equity 1.23) despite solid ROE (13.20%). Cash flow is the key कमजोरी with negative operating and free cash flow in the latest period.

Income Statement

CSB Bank Ltd. has shown consistent revenue growth over the years, with a notable increase of 8.84% in the latest period. The gross profit margin remains strong at 53.58%, indicating efficient cost management. However, the net profit margin has decreased from previous years, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins are healthy, reflecting solid operational performance.

Balance Sheet

The bank's debt-to-equity ratio has increased to 1.23, indicating higher leverage, which could pose risks if not managed carefully. Return on equity is solid at 13.20%, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced approach to asset financing.

Cash Flow

The cash flow statement reveals challenges, with negative operating and free cash flows in the latest period. The free cash flow to net income ratio is positive, indicating some ability to cover net income, but the overall cash flow position needs improvement to ensure long-term sustainability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	48.51B	45.69B	35.12B	26.35B	22.85B	21.75B
Gross Profit	25.39B	24.48B	20.61B	16.50B	14.00B	12.44B
EBITDA	8.07B	8.76B	8.17B	7.77B	6.52B	3.33B
Net Income	5.99B	5.94B	5.67B	5.47B	4.58B	2.18B
Balance Sheet
Total Assets	0.00	478.36B	360.56B	291.62B	253.56B	233.37B
Cash, Cash Equivalents and Short-Term Investments	0.00	36.76B	32.92B	4.78B	2.03B	21.19B
Total Debt	0.00	55.46B	17.57B	7.83B	21.16B	15.79B
Total Liabilities	-44.98B	433.39B	322.52B	259.59B	227.05B	211.57B
Stockholders Equity	44.98B	44.98B	38.04B	32.04B	26.51B	21.80B
Cash Flow
Free Cash Flow	0.00	-126.98B	5.70B	21.36B	-9.14B	13.17B
Operating Cash Flow	0.00	-123.98B	6.88B	22.11B	-8.58B	13.74B
Investing Cash Flow	0.00	19.04B	-55.58B	-7.24B	1.31B	-12.31B
Financing Cash Flow	0.00	109.32B	61.87B	30.93B	16.30B	6.32B

CSB Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 506.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CSBBANK, the sentiment is Negative. The current price of 506.1 is above the 20-day moving average (MA) of 406.35, above the 50-day MA of 443.04, and above the 200-day MA of 406.33, indicating a bearish trend. The MACD of -18.57 indicates Positive momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 32.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CSBBANK.

CSB Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMB	79 Outperform	₹109.86B	8.79	―	2.15%	7.08%	7.69%
SOUTHBANK	77 Outperform	₹107.70B	7.63	―	1.05%	8.09%	2.68%
KTKBANK	70 Outperform	₹76.75B	6.59	―	2.42%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UJJIVANSFB	60 Neutral	₹117.73B	23.77	―	2.82%	6.15%	-64.12%
CSBBANK	58 Neutral	₹67.75B	10.89	―	―	32.90%	12.28%
EQUITASBNK	56 Neutral	₹74.46B	-110.22	―	1.63%	10.02%	-120.18%

CSB Bank Ltd. Corporate Events

CSB Bank Updates Exchanges on Analyst and Institutional Investor Meetings

CSB Bank Ltd. disclosed that it participated in meetings with analysts and institutional investors, including WhiteOak Capital and 360 One Capital, on February 20, 2026. The interactions, held virtually and in Mumbai, were classified as one-on-one or similar formats, and the bank confirmed that no unpublished price-sensitive information was shared during these engagements.

By formally updating the exchanges on these investor interactions under disclosure regulations, CSB Bank reinforces its commitment to transparency and compliance in market communications. The clarification that no unpublished price-sensitive information was shared helps reassure stakeholders about fair disclosure practices and mitigates concerns over selective dissemination of material information.

CSB Bank Releases Q3 FY26 Investor Presentation on Financial Performance

CSB Bank Limited has released an investor presentation detailing its financial and business performance for the quarter ended 31 December 2025, in line with regulatory disclosure requirements. The presentation, made available to institutional investors and analysts as well as on the bank’s website, underscores the lender’s ongoing efforts to maintain transparency with capital markets and provide stakeholders with regular updates on its quarterly operating and financial performance.

CSB Bank Transfers ESOS Trust Shares to Employees Under 2019 Stock Option Scheme

CSB Bank Limited announced that its CSB ESOS Trust has transferred a total of 15,516 equity shares to three eligible employees following the exercise of vested stock options under the CSB Employee Stock Option Scheme 2019. The move reflects the bank’s ongoing implementation of its employee stock ownership plan, aligning staff incentives with shareholder interests and marginally increasing the direct equity holdings of participating employees.

CSB Bank Posts Strong Q3 FY26 Growth Led by Gold Loans and Term Deposits

CSB Bank reported strong business growth for the quarter ended 31 December 2025, with total deposits rising 21% year-on-year to ₹40,460 crore, driven primarily by a 27% increase in term deposits, while CASA deposits grew a modest 3%. Gross advances expanded 29% year-on-year to ₹37,208 crore, underpinned by a robust 46% surge in advances against gold and gold jewellery, underscoring the bank’s deepening reliance on its gold loan franchise as a key growth engine and reinforcing its positioning in a competitive retail lending market; the data remain provisional pending limited review by joint statutory auditors.

CSB Bank Engages in Analyst Meeting with Transparency

CSB Bank Limited participated in an Analyst/Institutional Investor meeting held virtually with Theleme Partners on December 17, 2025. The bank confirmed that no unpublished price-sensitive information (UPSI) was shared during the interaction, highlighting its commitment to transparency and regulatory compliance.

CSB Bank Transfers Equity Shares Under Employee Stock Option Scheme

CSB Bank Limited has announced the transfer of 17,629 equity shares from the CSB ESOS Trust to two eligible grantees. This transfer is part of the exercise of vested stock options under the CSB Employee Stock Option Scheme 2019, highlighting the bank’s commitment to rewarding its employees and enhancing stakeholder engagement.

CSB Bank Transfers Equity Shares Under Employee Stock Option Scheme

CSB Bank Limited has announced the transfer of 3,500 equity shares from the CSB ESOS Trust to an eligible grantee as part of the exercise of vested stock options under the CSB Employee Stock Option Scheme 2019. This transfer highlights the bank’s ongoing commitment to employee incentive programs, potentially impacting its employee retention and motivation strategies.