Under this portfolio company distributes Gold loans and Non-gold loans.
In FY17-18, Retail asset portfolio comprises of gold loan of 2,477 crore and retail loans (non-gold) of 1,603 crore. During the year, gold loan book has grown by 22% from 2,025 crore as on 31st March 2017 to 2477 crore as on 31st March 2018. The non-gold retail portfolio growth is almost flat and stood at 1603 crore as on 31st March 2018 compared to 1626 crore as on 31st March 2017.
Bank plays an important role in supporting the Small and Medium Enterprise (SME) Business across the geographies of India. SME Business portfolio stands at 3,693.6 crore as on March 31, 2018, equal to 36.86% of the Bank’s total advance. The Bank extends working capital, term loan, and trade finance and project finance facilities to SME for their various financial need.
Priority Sector Advance extended by the Bank stood at 3551.93 crore at the end of March 2018, constituting 42.96% of Adjusted Net Bank Credit.
This is against the mandated target of 40% prescribed by Reserve Bank of India. At present, the bank has a network of over 430 branches and more than 240 ATMs across India. The Bank also plans to open a number of branches in a phased manner.
Indian Banking Environment
The performance of the banking sector remained sombre, Public Sector Banks in particular. The position of stressed assets coupled with the discovery of frauds and governance issues in the banks have made this year a challenging one for the whole banking industry. On a positive note, the Insolvency and Bankruptcy Code mechanism finally took shape this year which we expect to be a shot in the arm for the Banking Industry in resolving the prevalent NPA Crisis.
(i) The growth in advances by 15 % taking the gross advances to above 10,000 crore.
(ii) The Credit Deposit Ratio improved to 63.6 % as on 31st March 2018 from 54.5 % as on 31st March 2017. Increase has been mainly in less risky advances (high rated corporate and gold loans), given the bank’s low risk appetite in the face of low capital base.
(iii) This is reflected in the fact that the effective risk weight of advances of the bank has actually decreased from 53% as on 31.03.2017 to 49% as on 31.03.2018. Bank could effectively redeploy 1,200 crore of Treasury Assets to loans, increasing returns but not increasing commensurately the risks.
(iv) Bank’s deposits slightly de-grew on account of decrease in term deposits which was due to the conscious call taken by the Bank, to reduce high cost term deposits & improve low cost CASA accounts. Cost of deposits has been brought down from 6.90% in March 2017 to 6.15 % in March 2018. CASA of the Bank improved by 276 crore to `3971 crore as on 31st March 2018 from 3695 crore in March 2017. Bank has improved its CASA ratio to 27.03 %, showing an increase of 225 bps from 24.78 %.
(v) Bank has also reduced wholesale deposits by 482 crore and wholesale deposits as a proportion of total deposits is only 4.5% now indicating very low concentration risk.
|Particulars ( inCrs)||March 31st, 2018||March 31st, 2017|
|Net Interest Income (NII)||384.81||313.6|
|Provisions and Contingencies (Other than tax)||223.69||160.63|
|Profit / (Loss) before Tax||-149.36||-8.92|
|Provision for taxes||-51.89||-10.47|
|Net Profit /(Loss)||-97.47||1.55|
|Capital Adequacy Ratio (CRAR)% Basel – II||9.92||12.18|
|Capital Adequacy Ratio (CRAR)% Basel – III||9.91||12.15|
|Earnings per share||-12.04||0.21|
|Book value per share||109.81||123.44|
|Net Interest Margin%||2.32||1.91|
|Return On Assets (ROA)%||-0.59||0.01|
The Recent Investment of FIH Mauritius Investments Limited in the Catholic Syrian Bank @ 140 per shares is very positive for the bank.
“ As per news in the Market”
Canadian billionaire Prem Watsa-owned Fairfax India Holdings Corporation has invested $60.2 million (approximately ₹440 crore) in securities of Catholic Syrian Bank, comprising 19.8 million common shares for $9.5 million (approximately ₹70 crore) and warrants to purchase 66.5 million common shares for $50.7 million (approximately ₹370 crore.
The consideration paid thus far represented 25% and 40% of the consideration payable for the common shares and warrants, respectively. Fairfax made the investment on October 19. “The balance of the consideration payable to CSB of approximately $104 million at the exchange rate at that date (approximately ₹770 crore) is payable within 18 months following the initial investment, payable in one or more tranches either upon request by CSB or at the option of
Fairfax India,” Fairfax said
So after this investment the Book Value per shares for CSB comes out to be 120 Per share.
In the listed segment generally banks trade at 2x-3x of their Book value , so accordingly , the CSB will surely get a valuation above 225 – 240 per share when it will come up with an IPO.
“ As per News published in Business Standard on 28 Mar ch 2 01 9”
Fairfax-backed Catholic Syrian Bank (CSB) is gearing up for a listing in order to meet RBI requirements. The bank, which has enough capital for the next three years, says it is looking at two routes – direct listing, or through an IPO. The latter may involve the sale of both new and existing shares.
Last year, Fairfax got all the approvals to acquire a 51 per cent stake in CSB for around Rs 1200 crore. This is the first stake sale of an Indian bank to a foreign non-banking entity since the RBI tweaked ownership norms in May 2017. One of the conditions imposed by the RBI required that bank is listed before September 2019.
The bank has also approached the Securities and Exchange Board of India (SEBI) requesting approval for a direct listing, where all existing shares become tradable without the need for an initial public offering.
Rajendran cited Spotify and another firm, which have taken the direct listing route.
“We have enough capital for the next three years, so the listing is not for money but to meet the regulator’s condition, so we thought we will take the direct listing route.”
“If SEBI doesn’t agree to a direct listing, the bank will pursue the IPO route that may
involve the sale of both new and existing shares,” Rajendran added.
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