CSB back in ‘black’ after several quarters

Capital base strengthens by 47 pc to Rs1303 crore

THRISSUR: Having been in the ‘red’ for several quarters, Catholic Syrian Bank (CSB) has made a dramatic turnaround in its performance by logging a profit for the quarter ending December 31, 2018, albeit a lowly Rs74 lakh compared with Rs46.51 crore loss a year ago and against Rs31.97 crore loss for the immediate preceding quarter.

While the operating profit for the quarter under review was Rs43.01 crore against Rs15.19 crore a year ago, the provisions nosedived during the quarter year-on-year by more than half from Rs86.32 crore to Rs41.41 crore thus setting the crucial ground for profitability.

However, the non-performing assets (NPAs) may continue as pain points for the bank for some more time to come. The gross NPA has marginally increased from Rs700.02 crore to Rs780.03 crore year-on-year.

But the net NPA has witnessed a drop from Rs422.98 crore to Rs365.47 crore during the period. The same trend has been reflected in the NPA ratios too with the GNPA inching up from 7.16 per cent to 7.52 per cent and the net NPA dropping from 4.45 per cent to 3.67 per cent.

With the much-talked-about entry of Fairfax group, the capital base of the bank has started getting strengthened. Already the bank has got funds in the form Rs2.5 paid-up capital adding up to Rs4.96 crore, and Rs19.94 crore as share warrants, whereas the current reserves are comfortable at Rs1037.95 crore.

CSB explained that the bank has issued 1.98 crore equity shares at Rs140 per share (including premium of Rs130 per share) to FIH Mauritius Investments Ltd. “Out of the said issue of equity shares, the bank has received an amount of Rs35 per share (Rs2.50 towards share capital and Rs32.50 towards share premium), aggregating Rs69.41 crore (approximate) towards application and allotment money,” it said.

The Bank has also issued 6.65 crore warrants (being compulsorily convertible into or exchangeable for equity shares) at Rs140 per warrant (including premium of Rs130 per warrant) to FIH Mauritius Investments Ltd.

Out of the said issue of warrants, the note adds, the bank has received an amount of Rs56 per warrant (Rs3 towards warrant capital and Rs53 towards warrant premium) aggregating Rs372.19 crore towards application and allotment money.

Consequent to these transactions the paid-up equity capital of the bank increased from Rs81.01 crore to Rs85.97 crore and share premium account from Rs647.51 crore to Rs1064.22 crore. The bank has also accounted share warrant capital amounting to Rs19.94 crore.

With the help of the fresh capital, the capital adequacy of the bank has improved from a precarious 10.24 per cent to a comfortable 15.45 per cent. The asset base of the bank also witnessed a handsome growth of 11.73 per cent – from Rs15,870.05 crore to Rs17,737.14 crore.

 

 

 

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