CSB Bank Block Deal: FIH Mauritius likely to sell 9.72% stake for ₹594.5 crore

CSB Bank Block Deal: FIH Mauritius likely to sell 9.72% stake for ₹594.5 crore

FIH Mauritius is likely to sell a 9.72% stake in private lender CSB Bank through a block deal, sources privy to the developments told CNBC-TV18. The transaction is valued at approximately ₹594.5 crore, according to multiple people familiar with the development.

The block deal will see FIH Mauritius offloading 1.68 crore shares at a floor price of ₹352.4 per share, sources in the know told CNBC-TV18. This price represents a 1% discount to the stock's closing price. Following the sale, FIH Mauritius will retain a 40% stake in CSB Bank.

IIFL Securities has been appointed as the sole broker for the transaction, which includes a 90-day lock-in period for the shares being sold.

CSB Bank reported a 3.1% year-on-year (YoY) dip in net profit at ₹151.5 crore for the fourth quarter that ended March 31, 2024. In the corresponding quarter in FY23, CSB Bank posted a net profit of ₹156.4 crore.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased by 11%, coming at ₹387 crore against ₹349 crore in Q4 of FY23.

The gross non-performing assets (GNPAs) stood at 1.47% in the fourth quarter, against 1.22% in the third quarter of FY24. Net NPAs came at 0.51% against 0.31% quarter-on-quarter (QoQ).

In monetary terms, gross NPAs stood at ₹361 crore against ₹278.7 crore in the December quarter (Q3), whereas net NPAs in Q4 were down ₹124.9 crore from ₹702.3 crore in Q3.

Operating profit FY24 rose 10% year-on-year (YoY) to ₹780 crore from ₹707 crore in FY23. In Q4 of FY24 operating profit grew 13% at ₹228 crore against ₹202 crore in the year-ago period.

Shares of CSB Bank Ltd ended at ₹355.85, down by ₹0.050, or 0.014% on the BSE.