KOCHI: Plans have already been drawn out to reposition the centenarian CSB Bank as a ‘New-Age Bank over the next few years.
Addressing an analyst’s question on CASA (current and savings accounts) growth and the challenges of building a sustainable deposit franchise, the CEO of CSB Bank, Pralay Mondal, said despite its legacy, its future will look decidedly different
“The heart of this transformation centers on a robust investment in technology, a strategic CASA build-up, and a clear push to expand the bank’s retail footprint,” Mondal further explained.
Stating that for now, CSB is managing its operations as a traditional bank, Mondal added that by 2026 or 2027, the bank aims to reveal a transformed face, poised to compete with new-age banks.
To achieve this, the bank must strengthen its CASA franchise. “Retail assets cannot be built without a CASA franchise because you need customers,” the CEO explained.
As such, CSB is scaling its branch network and investing in technology, with a clear focus on transforming these branches into hubs for CASA growth and retail business acquisition by FY 2026-27.
Phased growth
The CEO was clear about the phased rollout. Wholesale and SME businesses, which rely more on relationships than on technology, will see the first wave of growth, with significant pick-up expected as early as next year.
Conversely, retail growth will follow a “back-ended” strategy, gaining momentum around FY 2027, when technology investments are fully integrated and customer acquisition strategies mature.
“We don’t want to enter the market aggressively right now when retail growth is at its peak. Instead, we’ll wait for the right cycle when overall system growth drops below 10 per cent,” the CEO remarked.
Retail entry
CSB said it will avoid reliance on DSAs (Direct Sales Agents) or purchasing loan portfolios in order to make its entry into Retail less cumbersome, but focus instead on organic growth and customer relationships.
CSB’s long-term vision extends beyond immediate performance metrics, aiming to build a retail franchise that spans the country, fueled by cutting-edge technology and a well-defined distribution network.
The CEO highlighted that investments are being made across the board in technology, people, and leadership, with a commitment to becoming a customer-centric bank by leveraging payment products, granular fees, and an extensive CASA franchise.
The Final Push
The CEO also conveyed that the gold loan segment, which currently supports steady growth, will gradually become a smaller part of CSB’s portfolio as other segments expand.
By the decade’s end, CSB envisions a fully diversified asset base, with wholesale, SME, and retail assets driving a modern, tech-forward banking experience.
