CSB Bank Ltd

The provided pages of the CSB Bank Limited report do not contain any information regarding the current or expected order book or pending orders. The focus of the discussion is mainly on: - Asset quality and slippages - Growth strategies in wholesale, SME, retail, and gold loan segments - Provisioning and risk management - Cost of funds and NIM outlook - Branch network expansion and technology investments - Yield across various loan segments - Overall financial performance and outlook toward SBS 2030 vision No mention or data related to order book or pending orders is included in the available text.

- There is no specific mention of any current or planned fundraising through debt or equity in the provided text. - The focus appears to be on organic growth, strengthening the wholesale, SME, retail, and gold loan businesses, and investing significantly in technology and new verticals. - The bank emphasizes building a medium-sized bank by 2030 through internal growth without dependance on mergers or partnerships. - The management highlights confidence in their robust capital base with a CRAR of 24.47%, indicating no immediate capital raising needs. - No explicit plans for debt or equity fundraising are communicated during the discussion.

- Significant ongoing investment in technology transformation, including both capex and opex, focused on a complete overhaul of the bank’s technology stack. - Planning a Phase 1 go-live of core system migration (Oracle – OGL – OFSA) within the current fiscal year. - Investment in building new business verticals and distribution networks to support growth aligned with the SBS 2030 vision. - Branch expansion plan includes opening 60 to 75 new branches in the next fiscal year. - Strategic investments aim to build sustainable franchise businesses in wholesale, SME, retail, and gold loan segments. - Expect tapering of investment intensity from FY 2026, with cost-to-income ratio improving significantly by FY 2030, targeting below 50%.

- The bank aims to grow around 30% to 50% faster than the system; for example, if system credit grows at 13%, the bank targets around 19% growth. - Gold loan growth is expected between 15% to 20%, slightly less than overall growth. - SME segment has started growing at 25% and above, expected to continue strong growth. - Wholesale banking is being built as a franchise business with experienced leadership; full-scale growth is projected to start within a year, with a turnaround expected in the next 2 years. - Retail business growth will pick up significantly from FY 2027 to FY 2030. - The business mix is planned to evolve by 2030: gold ~20%, retail ~30%, SME ~20%, and wholesale ~30%. - Advances growth will resume to 1.5x industry growth, prioritizing franchise businesses even at lower margins. - Branch expansion of 60 to 75 branches planned next fiscal year to support growth.

- CSB Bank aims to grow advances 30% to 50% faster than the industry, targeting around 19% growth in gold loans and overall faster growth in SME, retail, and wholesale segments from FY 2026 onward. - The bank expects steady improvement in non-interest income, targeting sustained growth beyond the current 17% share of total income. - Operating expenses are higher now due to technology and distribution investments but are expected to taper from FY 2026, with cost-to-income ratio dropping below 50% by FY 2030. - NIM is expected to stabilize between 4.5% to 5% as growth picks up, with prioritization on franchise business even at lower margins. - Profitability metrics like ROE and EPS are expected to improve with the business mix shift and growth, building on FY 2024 EPS of INR 32.67 and ROE of 17.37%. - The bank is confident of sustained earnings growth aligned with its SBS 2030 strategy.