CSB bounces back

CSB is in the news. Yesterday, the recently listed stock slipped for the first time below the IPO price of Rs.195, closing at Rs.193.15. But today, there has been a turnaround with the stock opening higher at Rs.197 and going to an intraday high at Rs.201.95.

Yesterday, after market hours, the bank informed the exchanges that the regulatory restrictions imposed by Reserve Bank of lndia on opening of new branches, due to the delayed IPO has been lifted.

Accordingly, the Bank can currently open branches under the general permission of RBI on the condition that at least 25%of the total number of "Banking Outlets" opened during a financial year are opened in unbanked rural centres, which is applicable for all banks, as part of the general permission.

The Bank’s IPO was mainly to fulfill RBI’s regulatory requirement, as per which Fairfax India Holdings Corporation is required to reduce stake to 40% in five years, 30% in 10 years, and 15% in 15 years.