Outlook & Valuation: At the upper end of the price band, CSB Bank demands
Adj. PB multiple of 2.4x of Q2FY2020 Adj. book value, which we believe is
expensive considering the investment concerns. Similar banks are trading at lower
valuation than CSB and have better return ratio (DCB Bank at P/ABV of 1.73x,
Federal Bank at 1.36x, South Indian Bank at 0.5x, City Union Bank at 3.23x and
Karur Vysya Bank at 0.8x). Gold financiers with better return profile and pan India
presence are trading at 2.6x of Q2FY2020 Book Value. We believe investors
should wait for price discovery before taking any investment decision. Hence, we
have NEUTRAL view on the issue.

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