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CSB Bank Ltd

BSE Code : 542867 | NSE Symbol : CSBBANK | ISIN:INE679A01013| SECTOR : Banks |

NSE BSE
 
SMC up arrow

302.90

0.10 (0.03%) Volume 280564

24-Sep-2021 EOD

Prev. Close

302.80

Open Price

306.00

Bid Price (QTY)

302.90(50)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 309.75 - 302.00

52 wk High/Low 374.00 - 193.20

Key Stats

MARKET CAP (RS CR) 5255.75
P/E 23.27
BOOK VALUE (RS) 116.7646811
DIV (%) 0
MARKET LOT 1
EPS (TTM) 13.02
PRICE/BOOK 2.5945345557065
DIV YIELD.(%) 0
FACE VALUE (RS) 10
DELIVERABLES (%) 46.31
4

News & Announcements

23-Sep-2021

CSB Bank Ltd - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

20-Sep-2021

CSB Bank Ltd - CSB Bank Limited - Loss of Share Certificates

18-Sep-2021

CSB Bank Ltd - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

17-Sep-2021

CSB Bank Ltd - CSB Bank Limited - Analysts/Institutional Investor Meet/Con. Call Updates

20-Aug-2021

CSB Bank gets assigned rating for proposed Basel III Compliant Tier II bond issue

14-Jul-2021

CSB Bank to conduct board meeting

07-Jul-2021

CSB Bank to conduct AGM

03-Jun-2021

CSB Bank receives ratings for proposed Tier II bond issue

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AU Small Finance Bank Ltd 540611 AUBANK
Axis Bank Ltd 532215 AXISBANK
Bandhan Bank Ltd 541153 BANDHANBNK
Bank of Madura Ltd (Merged) 531966 BANKMADURA
Bank of Punjab Ltd(merged) 500070 BANKPUNJAB
Bank of Rajasthan Ltd(merged) 500019 BANKRAJAS
Centurion Bank of Punjab Ltd(merged) 532273 CENTBOP
City Union Bank Ltd 532210 CUB
DCB Bank Ltd 532772 DCBBANK
Dhanlaxmi Bank Ltd 532180 DHANBANK
Equitas Small Finance Bank Ltd 543243 EQUITASBNK
Federal Bank Ltd 500469 FEDERALBNK
Global Trust Bank Ltd (Merged) 500161 GLOBLTRUST
HDFC Bank Ltd 500180 HDFCBANK
ICICI Bank Ltd 532174 ICICIBANK
IDBI Bank Ltd(merged) 532235 IDBIBANK
IDBI Bank Ltd 500116 IDBI
IDFC First Bank Ltd 539437 IDFCFIRSTB
IndusInd Bank Ltd 532187 INDUSINDBK
ING Vysya Bank Ltd(Merged) 531807 INGVYSYABK
Jammu and Kashmir Bank Ltd 532209 J&KBANK
Karnataka Bank Ltd 532652 KTKBANK
Karur Vysya Bank Ltd 590003 KARURVYSYA
Kotak Mahindra Bank Ltd 500247 KOTAKBANK
Lakshmi Vilas Bank Ltd(Merged) 534690 LAKSHVILAS
Nedungadi Bank Ltd (Merged) 511264 NEDUNGBANK
RBL Bank Ltd 540065 RBLBANK
South Indian Bank Ltd 532218 SOUTHBANK
Standard Chartered PLC 580001 STAN
Suryoday Small Finance Bank Ltd 543279 SURYODAY
Times Bank Ltd (merged) 532252 TIMESBANK
Ujjivan Small Finance Bank Ltd 542904 UJJIVANSFB
United Western Bank Ltd(merged) 500430 UNIWESTBNK
Yes Bank Ltd 532648 YESBANK

Share Holding

Category No. of shares Percentage
Total Foreign 23647262 13.63
Total Institutions 19368710 11.16
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 5161873 2.98
Total Promoters 86262976 49.72
Total Public & others 39045006 22.52
Total 173485827 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About CSB Bank Ltd

The Catholic Syrian Bank Limited (CSB) is one of India's oldest private sector banks with headquarters in the Thrissur district of Kerala. CSB commenced business on 01 January 1921 with an authorised capital of Rs.5 lakhs and a paid up capital of Rs. 45270/-. Presently the bank has a client base of over 1.6 million customers. During the FY2020, the bank has raised capital of Rs 409.68 crore through Initial Public Offering(IPO) and the shares of the bank were listed in BSE and NSE from 04 December 2019. During the first two decades of its functioning, the Bank concentrated only in Kerala. Banks and credit institutions which proliferated especially in Kerala received a jolt and many of them came to their doom following the crash of the Travancore National Quilon Bank in 1938 followed by Palai Central Bank in1960. During the period many small banks came to the verge of collapse shaking the confidence of the public and what followed was a process of consolidation. The strategy of mergers and amalgamations of small banks with bigger banks brought the number of banks within controllable limits, thereby making the industry's base strong. In 1964-65, The Catholic Syrian Bank Ltd took part in taking over the liabilities and assets of five small/medium sized banks in Kerala. The expansion programme initiated during these years gathered momentum in the subsequent years. In August 1969, the Bank was included in the Second Schedule to the Reserve Bank of India Act 1934. In 1975, the Bank attained the status of 'A' Class Scheduled Bank when its total Deposits crossed Rs.25 crores. The necessity of imparting training to staff looked very important and a modest beginning was therefore, made in setting up a Training College in 1975. In the same year the Bank entered the field of foreign Exchange. At a very early stage, the Bank recognised mechanisation as an effective tool of management and streamlined its accounting procedures by introduction of Data processing system. From November 1975, reconciliation of inter-branch accounts was mechanised by using IBM Data processing machines. The decade of the seventies saw the evolution of a new culture in Indian Banking. Nationalisation of banks imposed 'Social Control' and imparted new ethos to commercial banking . What followed was a massive expansion of bank branches with a distinct thrust on remote rural belts. Special schemes were formulated to cater to the diverse credit needs of small scale industries, road transport operators, agriculturists,and other self employed entrepreneurs. The Catholic Syrian Bank Ltd did not lag behind in taking up the challenge and more than 75% of its clientele belong to small and economically weaker strata of Society. The Bank has a strong rural base with around 80% of the branches in rural and semi- urban areas. Investments in money market and capital market instruments are being expanded and steps are being taken to have an in house equity research wing so as to face the challenges of the future. The Bank has also geared up its machinery to increase its market share of corporate finance in the days to come. The Bank has a Tie-up arrangment with Birla Sunlife Insurance Company Ltd for marketing their Life Insurance products and with New India Assurance Company Limited for marketing their General Insurance products. At Present, the Bank has tie-up arrangements with five companies to market their mutual fund products. At present, the bank has a network of 334 branches/extension counters which includes 5 NRI branches, 5 SSI branches, 5 industrial Finance branches and 4 Service branches. The Bank also plans to open more number of branches in a phased manner. The Bank has installed 21 new ATMs at different locations during the 2005-2006. The Bank at present has 71 Atms. The Bank has 109 ATM networked branches and it is proposed to bring the entire branches under the ATM Network by the end of March 2007. On 14 October 2014, the Bank had successfully allotted under preferential allotment basis 3406094 equity shares at a price of Rs 180 per share (inclusive of premium of Rs 170 per share) to eleven investors aggregating Rs 61,30,96,920. On 27 March 2015, the Bank had successfully allotted 15084406 equity shares of Rs 10 each to its existing shareholders in the ratio of 1 rights equity share for every 3 shares of the face value of Rs 10 each held by such equity shareholders, at a price of Rs 75 per share (inclusive of premium of Rs 65 per share), aggregating Rs 113.13 Crore. The Bank's aggregate deposits rose by Rs 800.63 Crore to Rs 14,474.49 Crore as on 31 March 2015, from Rs 13,673.86 Crore in March 2014 recording a growth of 5.86%. During this period, the Bank's net advances increased to Rs 9,471.96 Crore as against Rs 8,707.36 Crore in the previous year. As on 31 March 2015, the bank has a distribution network of 431 branches and 233 ATMs across the country. On 12 January 2016, the Bank had allotted 55,00,000 Equity Shares at a price of Rs 100 per share (inclusive of premium of Rs 90 per share), aggregating Rs 55,00,00,000. On 03 February 2016, the Bank had allotted 48, 00,325 Equity Shares at a price of Rs 100 per share (inclusive of premium of Rs 90 per share), aggregating Rs 48,00,32,500. On 18 February 2016, the Bank had allotted 10,70,032 Equity Shares at a price of Rs 100 per share (inclusive of premium of Rs 90 per share), aggregating Rs 10,70,03,200. During the fiscal 2016, the total deposits of the Bank stood at Rs 14,438.40 Crore, registering a negative growth to the tune of Rs 36.09 Crore, compared to previous year level of Rs 14474.49 crore. The negative growth is attributable to the conscious de-risking policy adopted by the Bank in FY16 of shedding high cost corporate deposits to the tune of Rs 1006.70 Crore. During the FY2016, the Bank's net advances decreased to Rs 7,852.65 Crore against Rs 9,469.40 Crore in the previous year. As on 31 March 2016, the bank has a distribution network of 429 branches and 240 ATMs across the country. During the FY2017, on 25.10.2016, the Bank has allotted 92,54,100 Equity Shares on Preferential basis for an issue price of Rs 120 per share (Rs 10/- towards share capital & Rs 110 towards share premium) and mobilized Rs 111,04,92,000. During the FY2017, Bank's total deposits have increased by Rs 473.16 crore and reached Rs 14911.56 crore as compared to Rs 14438.40 crore in the previous year. During this period, the Bank's net advances increased to Rs 8,118.93 crore as against Rs 7,852.65 crore in the previous year. As on 31 March 2017, the bank has a distribution network of 426 branches and 257 ATMs across the country. During the FY2018, Bank's total Assets have decreased by Rs 353.18 crore and stood at Rs 15870.05 crore as compared to Rs 16,223.24 crore in the previous year. The Bank's total deposits have decreased by Rs 220.91 crore and stood at Rs 14,690.65 crore as compared to Rs 14,911.56 crore in previous year 2017. However Bank's Net Advances have increased by Rs 1,218.42 crore and reached Rs 9,337.36 crore as against Rs 8,118.93 crore in the previous year. As on 31 March 2018, the bank has a distribution network of 421 branches and 254 ATMs across the country. Pursuant to approval accorded by shareholders by way of special resolution passed in the Extraordinary General Meeting of the Bank held on 21 March 2018 and in terms of Reserve Bank of India approval vide etter DBR.PSBD.No.341/16.1.060/2018-19 dated 12 July 2018 and approval of Department of Financial Services of the Ministry of Finance, Government of India vide letter No. F.No.26/5/2018-BOA dated 09 October 2018, the Bank on 19 October 2018 allotted an aggregate number of 1,98,32,130 Equity Shares of Rs 10 each at an issue price of Rs 140 per share (including premium of Rs 130 per share) and 6,64,63,329 Warrants compulsorily convertible into or exchangeable for Equity Shares of Rs 10 each at an issue price of Rs 140 (including premium of Rs 130 per warrant) to FIH Mauritius Investments Ltd(FIHM). Equity shares were allotted on a partly paid up basis and received Rs 35 per share upfront, aggregating of Rs 694,124,550/-. Warrants were allotted on a partly paid up basis and received Rs 56 per warrant upfront, aggregating of Rs 3,72,19,46,424 and thereafter on 20 March 2019 received Rs 42 per warrant as first call aggregating of Rs 27,91,459,818. The Bank, as on 31 March 2019, has received an amount aggregating of Rs 7,207,530,792 by allotting Warrants and Shares to FIH-M. FIHM is holding 5.77 % in the paid up capital of the Bank and in terms of issued capital, the same is 19.68%. The said percentage will go up to 51 % on a fully diluted basis, post conversion of warrants into equity shares and partly paid up equity shares be made fully paid up. FIHM is an investment holding company incorporated under the laws of Mauritius. FIHM is wholly owned by Fairfax India Holdings Corporation ('FIHC'), an entity listed on the Toronto Stock Exchange. Fairfax Financial Holdings Limited ('FFH/Fairfax'), through its subsidiaries (collectively the 'Fairfax Group'), controls 93.7% of the voting shares of FIHC. FFH is also an entity listed on the Toronto Stock Exchange. During the FY2019, Bank's Total Assets have increased by Rs 1041.11 crore and stood at Rs 16911.16 crore as compared to Rs 15870.05 crore in the previous year. The Bank's Aggregate deposits as at 31 March 2019 stood at Rs 15123.87 Crore, as compared to previous year level of Rs 14690.65 Crore. During this period, the Bank's net advances increased to Rs 10615.24 crore as against Rs 9337.36 crore, registering 13.69% growth YoY in the previous year. As on 31 March 2019, the bank has a distribution network of 419 branches and 277 ATMs across the country. The financial year 2019-20 turned out to be one of the important milestone years in the corporate history of the Bank. The Bank successfully completed its Initial Public Offering (IPO) to the tune of Rs 409.676 crore which received an overwhelming response from the investors and the issue was subscribed overall by 86.92 times. The Public Issue of 21,009,067 equity shares of Rs 10 each of the Bank for cash at a price of Rs 195 per equity shares including a share premium of Rs 185 per equity share aggregating to Rs 409.676 crore comprised of a Fresh Issue of 1,230,769 equity shares of the Bank aggregating to Rs 23.999 crore and an Offer for Sale of 19,778,298 equity shares by the existing members of the Bank aggregating up to Rs 385.676 crore. The equity shares of Bank were listed and admitted for dealings on BSE Limited ('BSE') and National Stock Exchange Limited ('NSE') with effect from 04 December 2019. The Bank on receipt of approval of the shareholders by postal ballot on 04 May 2019, approached Registrar of Companies, Kerala to effect the change of name of the Bank from The Catholic Syrian Bank Limited' to CSB Bank Limited'. The Registrar of Companies, Kerala, issued Certificate of Incorporation pursuant to change of name on 10 June 2019 and accordingly, the change of name has been effective from the said date. The Reserve Bank of India, vide letter dated 28 June 2019, granted fresh license to carry on banking business in India, in lieu of the old license, consequent upon the change of name of the Bank. Reserve Bank of India, vide circular dated 17 October 2019, advised about notification of the change of name of the Bank from The Catholic Syrian Bank Limited' to CSB Bank Limited' in the second schedule to the Reserve Bank of India Act, 1934 with effect from 10 June 2019 by Notification DBR.PSBD.No.503/16.01.160/2019- 20 dated 17 July 2019 published in the weekly gazette (Part III-Section 4). During the fiscal 2020, Bank's total assets increased to Rs 18,864.24 crore as compared to Rs 16,911.16 crore in FY19 showing a y-o-y growth of 11.55%. The Bank's Aggregate deposits at the end of FY20 stood at Rs 15,790.68 crore, as against to previous year level of Rs 15,123.87 crore, registering a y-o-y growth of 4.41%. The Financial year 2019-20 has been a year of strategic development through well-made rational decisions. Bank closed/merged its 13 branches, but expanded its outreach to the customers by opening 10 new branches and 23 ATMs at various places across the country. As on 31 March 2020, the Bank has 417 branches including 3 service branches, 3 Asset Recovery Branches and 300 ATMs spread across the country. As on 31 December 2020, the bank has a network of 460 branches (including of 3 service branches and 3 Asset Recovery branches) and 319 ATMs spread across the country.

CSB Bank Ltd Chairman Speech

Dear Shareholders,

I am delighted to make my maiden address to the stakeholders of CSB Bank as Chairman of the Board. With the support from the Board of Directors, RBI and our shareholders, I am confident of successfully delivering my responsibilities. Since my joining the Board, in December 2018, I have been observing the Board of Directors and senior management meticulously following the governance and risk management norms. The entire team at CSB Bank under the leadership of our MD & CEO Mr. C. VR. Rajendran has ensured the effective implementation of our renewed strategies. This includes a prudent risk assessment, business expansion, reducing the NPAs, and turning the underperforming bank to a new age profit making entity. In FY20, CSB Bank had achieved 100 years of its glorious existence. During the Bank's centenary celebrations, the founders of the Bank were remembered, who had the vision to create an institution for providing employment and livelihood to a large section of the society. It was also a coincidence that during its 100th Year, your Bank came out with its highly successful IPO, and the Bank's shares were also listed on the bourses, adding another golden feather on its hat. Again, in its 101st year, your Bank opened 101 new branches, across India. A century old trust capital along with renewed strategies has enabled your Bank to script a success story to emulate. Amidst stress and difficulties in survival in the Indian banking sector, we are among few banks, in the recent past, who not only survived maintaining our own identity but successfully turned around on a well-defined glide path.

Provisioning

In banking, judicious provisioning is akin to sustainable risk management. Bank's NPA provisions increased by Rs.60 crores during the year consequent mainly due to the accelerated provisioning policy of the Bank in view of the prevailing uncertainties. Standard asset provisions have increased by 110 crores which include the covid related provision of around 25% on stressed assets starting from one-day default. Your Bank also has been providing 25% on the restructured accounts having more credit risk based on the management judgement as against a requirement of only 5%. The excess provisions held over and above RBI provisioning norm amounts to approximately

Rs.250 crores as on 31.03.2021.

AMIDST STRESS AND DIFFICULTIES IN SURVIVAL IN THE INDIAN BANKING SECTOR, WE ARE AMONG FEW BANKS, IN THE RECENT PAST, WHO NOT ONLY SURVIVED MAINTAINING OUR OWN IDENTITY BUT SUCCESSFULLY TURNED AROUND ON A WELL-DEFINED GLIDE PATH.

STANDARD ASSET PROVISIONS HAVE INCREASED BY 110 CRORES WHICH INCLUDE THE COVID RELATED PROVISION OF AROUND 25% ON STRESSED ASSETS STARTING FROM ONE-DAY DEFAULT. YOUR BANK ALSO HAS BEEN PROVIDING 25% ON THE RESTRUCTURED ACCOUNTS HAVING MORE CREDIT RISK BASED ON THE MANAGEMENT JUDGEMENT AS AGAINST A REQUIREMENT OF ONLY 5%.

On Performance

Since we began our transformation journey, we at CSB Bank have been building in the much needed operational resilience. We are ahead of the industry in terms of managing NPAs, provisioning, expanding our markets especially, in retail, gold loans and SME space.

I am delighted to say that in FY20 the Bank showed early signs of a turnaround and in FY21 the Bank has put on record a stellar performance despite following stringent provisioning norms. Congratulations to the team CSB for this path-breaking performance. This resulted in a significant improvement in all key performance ratios, earnings per share improved from Rs.0.88 to Rs.12.59 and Book value per share rose from Rs.113.04 to Rs.125.67. These stellar results had been well taken note of by the investors' community, thus pushing the market capitalisation to Rs.6000 crore mark post declaration of this year's results, the best ever market capitalisation, post listing of shares of the Bank.

I thank the Central Bank and promoters for all the support and guidance. Even during the difficult times our customers and shareholders continued to repose faith in the Bank, and they are indeed partners in our progress. My sincere thanks to them while I seek their continued patronage. My colleague Mr. C. VR. Rajendran, MD & CEO will elaborate more on our performance in his address. Banks need to embrace technology and keep updating the acquired technology for delivering customer

A SIGNIFICANT IMPROVEMENT IN ALL KEY PERFORMANCE RATIOS, EARNINGS PER SHARE IMPROVED FROM Rs.0.88 TO Rs.12.59 AND BOOK VALUE PER SHARE ROSE FROM

Rs.113.04 TO Rs.125.67. THESE STELLAR RESULTS HAD BEEN WELL TAKEN NOTE OF BY THE INVESTORS' COMMUNITY, THUS PUSHING THE MARKET CAPITALISATION TO Rs.6000 CRORE MARK POST DECLARATION OF THIS YEAR'S RESULTS.

experience as well as to be able to compete with the fintech companies in credit delivery. Digitalization is engraved in our strategy and in recent years we have made strides in rolling out various internet and mobile banking options. During the year the Bank has launched a virtual account opening application and WhatsApp banking. Further, our team along with our technology partners are working on enhancing the Bank's digital capabilities. The increased number of internet banking users in FY21 is proof that our digital strategies are delivering results.

Corporate Governance Philosophy

Transparency between the shareholders and prudent risk management are the cornerstones of effective corporate governance. As a significant player in the country's financial systems, any nonconformity to governance norms can jeopardize the Bank's very survival leading to exposing customers, employees and investors to enormous financial risks. In recent years, we have seen a few financial entities going through adverse situations leading the regulators to press the reboot button. The Corporate Governance Philosophy of the Bank is to promote corporate fairness, transparency and accountability, so as to maximize long-term value for all stakeholders. Your Bank is committed to high standards of corporate governance practices and upholds fairness and trust in all its dealings with its stakeholders, in line with its Corporate Governance Philosophy. This philosophy is realized through the Bank's endeavour in working towards portfolio, operational and reputation excellence. Bank in tune with Corporate Governance Philosophy, follows the principles of ‘arm's length basis' relationship and follows regulatory compliance in its all dealings with related parties. In practice, it follows a more conservative approach than even what the policy had laid down. I believe this Philosophy helped the Bank to be rated as the second-best bank among all banks by Forbes Business Magazine, based on the parameters of general satisfaction and key attributes like trust, fees, digital services, financial advice, etc.

Going Forward

FY21 has been a challenging year for the global economy as the consequences of the COVID-19 hitting most of the sectors. As the signs of devastation began to recede with the beginning of the vaccination, most economies started recovering in the last quarter of CY20 - including India. While the Government, Central Bank and research agencies expected a quick turnaround and an economic rebound in India, the second wave of the pandemic however is posing enormous challenges, creating an atmosphere of uncertainties. At the CSB Bank, we will closely monitor the external situation as well as keep ourselves agile to mitigate its impact. We will continue to be a socially committed Bank. In FY20 we ensured stability and in FY21 we have embarked on our journey towards profitability and growth. Our primary objective is to ensure governance and customer delight while creating value for our shareholders. Our workforce is becoming younger year on year. By aligning them with the Bank's vision we are able to build an efficient workforce and ensure their professional growth. In the coming years, we will also explore avenues for increasing your Bank's contribution to society under our CSR initiatives. At the same time, we are also looking after the wellbeing of the CSB family in the fight against the Covid. Across the world, climate change has a huge impact on financial institutions. It comes with risks as well as opportunities. On the risk side, we will monitor the impact of climate change on segments in our business banking portfolios. We will also move towards sustainable banking through financing energy efficient business models. As we are becoming a digitally enabled new age Bank, we are contributing to the planet by reducing fossil fuel consumption and resources. Going forward our strategic focus will remain on year-on-year growth. We help many entrepreneurial aspirations succeed through our retail and SME loan products. The majority of your Bank's clients are micro and small businesses who are pillars of the economy. Amidst economic uncertainties, we have a social business responsibility to make the credit available for those who bank on us. At the same time, we must ensure that the delivered credit is secured. The Board and senior management of the Bank are geared towards managing this twin responsibility. I wish to make a special mention on the invaluable contribution of Mr. Madhavan Menon, my predecessor chairman for setting up a good corporate governance framework in the Bank and also the sheer professionalism that he displayed during his tenure by sharing unbiased, decisive and professional opinions, keeping in view of all the stakeholders' interest at hand and setting the Bank on an all-round recovery path. I would like to conclude by thanking all our customers for their continued patronage, associates, partners, and other well-wishers for creating value and for strengthening our strategic intent, the Central Bank, and the Securities and Exchange Board of India, and the stock exchanges for all the help and guidance on regulatory compliance. I also thank Govt. of India, various state governments, in particular Government of Kerala and government agencies for the administrative guidance and help they have been extending. Stay Safe.

Thank you.

Madhavan Aravamuthan

Chairman

   

CSB Bank Ltd Company History

The Catholic Syrian Bank Limited (CSB) is one of India's oldest private sector banks with headquarters in the Thrissur district of Kerala. CSB commenced business on 01 January 1921 with an authorised capital of Rs.5 lakhs and a paid up capital of Rs. 45270/-. Presently the bank has a client base of over 1.6 million customers. During the FY2020, the bank has raised capital of Rs 409.68 crore through Initial Public Offering(IPO) and the shares of the bank were listed in BSE and NSE from 04 December 2019. During the first two decades of its functioning, the Bank concentrated only in Kerala. Banks and credit institutions which proliferated especially in Kerala received a jolt and many of them came to their doom following the crash of the Travancore National Quilon Bank in 1938 followed by Palai Central Bank in1960. During the period many small banks came to the verge of collapse shaking the confidence of the public and what followed was a process of consolidation. The strategy of mergers and amalgamations of small banks with bigger banks brought the number of banks within controllable limits, thereby making the industry's base strong. In 1964-65, The Catholic Syrian Bank Ltd took part in taking over the liabilities and assets of five small/medium sized banks in Kerala. The expansion programme initiated during these years gathered momentum in the subsequent years. In August 1969, the Bank was included in the Second Schedule to the Reserve Bank of India Act 1934. In 1975, the Bank attained the status of 'A' Class Scheduled Bank when its total Deposits crossed Rs.25 crores. The necessity of imparting training to staff looked very important and a modest beginning was therefore, made in setting up a Training College in 1975. In the same year the Bank entered the field of foreign Exchange. At a very early stage, the Bank recognised mechanisation as an effective tool of management and streamlined its accounting procedures by introduction of Data processing system. From November 1975, reconciliation of inter-branch accounts was mechanised by using IBM Data processing machines. The decade of the seventies saw the evolution of a new culture in Indian Banking. Nationalisation of banks imposed 'Social Control' and imparted new ethos to commercial banking . What followed was a massive expansion of bank branches with a distinct thrust on remote rural belts. Special schemes were formulated to cater to the diverse credit needs of small scale industries, road transport operators, agriculturists,and other self employed entrepreneurs. The Catholic Syrian Bank Ltd did not lag behind in taking up the challenge and more than 75% of its clientele belong to small and economically weaker strata of Society. The Bank has a strong rural base with around 80% of the branches in rural and semi- urban areas. Investments in money market and capital market instruments are being expanded and steps are being taken to have an in house equity research wing so as to face the challenges of the future. The Bank has also geared up its machinery to increase its market share of corporate finance in the days to come. The Bank has a Tie-up arrangment with Birla Sunlife Insurance Company Ltd for marketing their Life Insurance products and with New India Assurance Company Limited for marketing their General Insurance products. At Present, the Bank has tie-up arrangements with five companies to market their mutual fund products. At present, the bank has a network of 334 branches/extension counters which includes 5 NRI branches, 5 SSI branches, 5 industrial Finance branches and 4 Service branches. The Bank also plans to open more number of branches in a phased manner. The Bank has installed 21 new ATMs at different locations during the 2005-2006. The Bank at present has 71 Atms. The Bank has 109 ATM networked branches and it is proposed to bring the entire branches under the ATM Network by the end of March 2007. On 14 October 2014, the Bank had successfully allotted under preferential allotment basis 3406094 equity shares at a price of Rs 180 per share (inclusive of premium of Rs 170 per share) to eleven investors aggregating Rs 61,30,96,920. On 27 March 2015, the Bank had successfully allotted 15084406 equity shares of Rs 10 each to its existing shareholders in the ratio of 1 rights equity share for every 3 shares of the face value of Rs 10 each held by such equity shareholders, at a price of Rs 75 per share (inclusive of premium of Rs 65 per share), aggregating Rs 113.13 Crore. The Bank's aggregate deposits rose by Rs 800.63 Crore to Rs 14,474.49 Crore as on 31 March 2015, from Rs 13,673.86 Crore in March 2014 recording a growth of 5.86%. During this period, the Bank's net advances increased to Rs 9,471.96 Crore as against Rs 8,707.36 Crore in the previous year. As on 31 March 2015, the bank has a distribution network of 431 branches and 233 ATMs across the country. On 12 January 2016, the Bank had allotted 55,00,000 Equity Shares at a price of Rs 100 per share (inclusive of premium of Rs 90 per share), aggregating Rs 55,00,00,000. On 03 February 2016, the Bank had allotted 48, 00,325 Equity Shares at a price of Rs 100 per share (inclusive of premium of Rs 90 per share), aggregating Rs 48,00,32,500. On 18 February 2016, the Bank had allotted 10,70,032 Equity Shares at a price of Rs 100 per share (inclusive of premium of Rs 90 per share), aggregating Rs 10,70,03,200. During the fiscal 2016, the total deposits of the Bank stood at Rs 14,438.40 Crore, registering a negative growth to the tune of Rs 36.09 Crore, compared to previous year level of Rs 14474.49 crore. The negative growth is attributable to the conscious de-risking policy adopted by the Bank in FY16 of shedding high cost corporate deposits to the tune of Rs 1006.70 Crore. During the FY2016, the Bank's net advances decreased to Rs 7,852.65 Crore against Rs 9,469.40 Crore in the previous year. As on 31 March 2016, the bank has a distribution network of 429 branches and 240 ATMs across the country. During the FY2017, on 25.10.2016, the Bank has allotted 92,54,100 Equity Shares on Preferential basis for an issue price of Rs 120 per share (Rs 10/- towards share capital & Rs 110 towards share premium) and mobilized Rs 111,04,92,000. During the FY2017, Bank's total deposits have increased by Rs 473.16 crore and reached Rs 14911.56 crore as compared to Rs 14438.40 crore in the previous year. During this period, the Bank's net advances increased to Rs 8,118.93 crore as against Rs 7,852.65 crore in the previous year. As on 31 March 2017, the bank has a distribution network of 426 branches and 257 ATMs across the country. During the FY2018, Bank's total Assets have decreased by Rs 353.18 crore and stood at Rs 15870.05 crore as compared to Rs 16,223.24 crore in the previous year. The Bank's total deposits have decreased by Rs 220.91 crore and stood at Rs 14,690.65 crore as compared to Rs 14,911.56 crore in previous year 2017. However Bank's Net Advances have increased by Rs 1,218.42 crore and reached Rs 9,337.36 crore as against Rs 8,118.93 crore in the previous year. As on 31 March 2018, the bank has a distribution network of 421 branches and 254 ATMs across the country. Pursuant to approval accorded by shareholders by way of special resolution passed in the Extraordinary General Meeting of the Bank held on 21 March 2018 and in terms of Reserve Bank of India approval vide etter DBR.PSBD.No.341/16.1.060/2018-19 dated 12 July 2018 and approval of Department of Financial Services of the Ministry of Finance, Government of India vide letter No. F.No.26/5/2018-BOA dated 09 October 2018, the Bank on 19 October 2018 allotted an aggregate number of 1,98,32,130 Equity Shares of Rs 10 each at an issue price of Rs 140 per share (including premium of Rs 130 per share) and 6,64,63,329 Warrants compulsorily convertible into or exchangeable for Equity Shares of Rs 10 each at an issue price of Rs 140 (including premium of Rs 130 per warrant) to FIH Mauritius Investments Ltd(FIHM). Equity shares were allotted on a partly paid up basis and received Rs 35 per share upfront, aggregating of Rs 694,124,550/-. Warrants were allotted on a partly paid up basis and received Rs 56 per warrant upfront, aggregating of Rs 3,72,19,46,424 and thereafter on 20 March 2019 received Rs 42 per warrant as first call aggregating of Rs 27,91,459,818. The Bank, as on 31 March 2019, has received an amount aggregating of Rs 7,207,530,792 by allotting Warrants and Shares to FIH-M. FIHM is holding 5.77 % in the paid up capital of the Bank and in terms of issued capital, the same is 19.68%. The said percentage will go up to 51 % on a fully diluted basis, post conversion of warrants into equity shares and partly paid up equity shares be made fully paid up. FIHM is an investment holding company incorporated under the laws of Mauritius. FIHM is wholly owned by Fairfax India Holdings Corporation ('FIHC'), an entity listed on the Toronto Stock Exchange. Fairfax Financial Holdings Limited ('FFH/Fairfax'), through its subsidiaries (collectively the 'Fairfax Group'), controls 93.7% of the voting shares of FIHC. FFH is also an entity listed on the Toronto Stock Exchange. During the FY2019, Bank's Total Assets have increased by Rs 1041.11 crore and stood at Rs 16911.16 crore as compared to Rs 15870.05 crore in the previous year. The Bank's Aggregate deposits as at 31 March 2019 stood at Rs 15123.87 Crore, as compared to previous year level of Rs 14690.65 Crore. During this period, the Bank's net advances increased to Rs 10615.24 crore as against Rs 9337.36 crore, registering 13.69% growth YoY in the previous year. As on 31 March 2019, the bank has a distribution network of 419 branches and 277 ATMs across the country. The financial year 2019-20 turned out to be one of the important milestone years in the corporate history of the Bank. The Bank successfully completed its Initial Public Offering (IPO) to the tune of Rs 409.676 crore which received an overwhelming response from the investors and the issue was subscribed overall by 86.92 times. The Public Issue of 21,009,067 equity shares of Rs 10 each of the Bank for cash at a price of Rs 195 per equity shares including a share premium of Rs 185 per equity share aggregating to Rs 409.676 crore comprised of a Fresh Issue of 1,230,769 equity shares of the Bank aggregating to Rs 23.999 crore and an Offer for Sale of 19,778,298 equity shares by the existing members of the Bank aggregating up to Rs 385.676 crore. The equity shares of Bank were listed and admitted for dealings on BSE Limited ('BSE') and National Stock Exchange Limited ('NSE') with effect from 04 December 2019. The Bank on receipt of approval of the shareholders by postal ballot on 04 May 2019, approached Registrar of Companies, Kerala to effect the change of name of the Bank from The Catholic Syrian Bank Limited' to CSB Bank Limited'. The Registrar of Companies, Kerala, issued Certificate of Incorporation pursuant to change of name on 10 June 2019 and accordingly, the change of name has been effective from the said date. The Reserve Bank of India, vide letter dated 28 June 2019, granted fresh license to carry on banking business in India, in lieu of the old license, consequent upon the change of name of the Bank. Reserve Bank of India, vide circular dated 17 October 2019, advised about notification of the change of name of the Bank from The Catholic Syrian Bank Limited' to CSB Bank Limited' in the second schedule to the Reserve Bank of India Act, 1934 with effect from 10 June 2019 by Notification DBR.PSBD.No.503/16.01.160/2019- 20 dated 17 July 2019 published in the weekly gazette (Part III-Section 4). During the fiscal 2020, Bank's total assets increased to Rs 18,864.24 crore as compared to Rs 16,911.16 crore in FY19 showing a y-o-y growth of 11.55%. The Bank's Aggregate deposits at the end of FY20 stood at Rs 15,790.68 crore, as against to previous year level of Rs 15,123.87 crore, registering a y-o-y growth of 4.41%. The Financial year 2019-20 has been a year of strategic development through well-made rational decisions. Bank closed/merged its 13 branches, but expanded its outreach to the customers by opening 10 new branches and 23 ATMs at various places across the country. As on 31 March 2020, the Bank has 417 branches including 3 service branches, 3 Asset Recovery Branches and 300 ATMs spread across the country. As on 31 December 2020, the bank has a network of 460 branches (including of 3 service branches and 3 Asset Recovery branches) and 319 ATMs spread across the country.

CSB Bank Ltd Directors Reports

Dear Shareholders,

Your Directors have great pleasure in presenting you the 100th Annual Report together with the Audited Statement of Accounts of the Bank for the financial year ended 31st March, 2021.

BUSINESS OVERVIEW

In the FY 2020 21, the total income increased by Rs.541.61 crore to Rs.2,273.11 crore from Rs.1,731.50 crore in the corresponding previous financial year. In the same period, Interest income increased by Rs.362.40 crore to Rs.1,872.29 crore from Rs.1,509.89 crore and the non-interest income increased by Rs.179.21 crore to Rs.400.82 crore from Rs.221.61 crore in the corresponding previous financial year. In the same period, the total Operating Profit of the Bank increased by Rs.332.63 crore to Rs.613.21 crore from Rs.280.58 crore and Net Profit increased by Rs.205.68 crore to 218.40 crore from Rs.12.72 crore in the corresponding previous financial year. Despite the Covid-19 pandemic which disrupted the operations of the Bank in many ways especially first quarter and last month of the fourth quarter, in the financial year 2020-21, the Bank has reported a record net profit of Rs.218.40 crore in the financial year 2020-21 compared to Rs.12.72 crore in the corresponding previous financial year. The profit came on the back drop of a strong growth in net interest income (NII) supported by increased yield on advance/investments and decrease in the cost of deposits/funds Non-interest income was backed primarily by treasury profits, recovery in written off accounts, processing fee, commissions on selling bankassurance products and PSLC (priority sector lending certificate) income.

In the same period, the Bank's total advances grew by Rs.3151.51 crore to Rs.15,386.96 crore, led by an over 61% growth in gold loans to Rs.6,131 crore, from Rs.3,800 crore and Deposits grew by Rs.3,349.36 crore to Rs.19,140.04 crore from Rs.15,790.68 crore in the corresponding previous financial year. Gross non-performing assets (NPA) decreased by Rs.15.94 crore to Rs.393.49 crore as on March 31, 2021 from Rs.409.43 as on March 31, 2020. The gross NPA as percentage of advances fell by 86 basis points to 2.68% as on March 31, 2021 as against 3.54% as on March 31, 2020 in the corresponding previous financial year. Net NPAs also fell to 1.17% (Rs.168.81 crore) as of March 31, 2021 from 1.91% (Rs.216.94 crore) as on March 31, 2020. Provision coverage ratio improved to 84.89% at the end of the financial year from 80.02% in the corresponding previous financial year.

Total Assets have increased by Rs.4,473.11 crore and stood at Rs.23,337.35 crore as on March 31, 2021 as against

Rs.18,864.24 crore as on March 31, 2020. Net Advances have increased by Rs.3,071.77 crore and reached Rs.14,438.12 crore as on March 31, 2021 as against Rs.11,366.35 crore as on March 31, 2020.

There is no change in the nature of business of the Bank for the year under review.

FINANCIAL SUMMARY

The financial performance of the Bank for the fiscal 2020-21 is as given below:

Particulars March 31st 2021 March 31st 2020
Deposits 19,140.04 15,790.68
Borrowings Tier II Bonds Nil Nil
Net Advances 14,438.12 11,366.35
Total Assets/Liabilities 23,337.35 18,864.24
Net Interest Income (NII) 941.39 592.29
Non Interest Income 400.82 221.61
Operating Profit/ (Loss) 613.21 280.58
Provisions and
Contingencies (Other than tax) 320.66 146.58
Profit /(Loss) before Tax 292.55 134.00
Provision for taxes 74.15 121.28
Net Profit /(Loss) 218.40 12.72
Add: Surplus/(Deficit)
brought forward from last period (513.96) (513.96)
Profit & Loss Account balance before appropriations (295.56) (501.24)
Appropriations
Statutory Reserve u/s 17 of the Banking Regulation Act, 1949. 54.60 3.18
Capital Reserve 117.67 8.33
Special Reserve 1.66 1.21
Investment Fluctuation 40.00 0.00
Reserve
Balance carried over to Balance Sheet (509.49) (513.96)
Key Performance Indicators
Capital Adequacy Ratio 21.37 22.46
(CRAR)% Basel – III
Earnings per share (in `) 12.59 0.88
Book value per share (in `) 125.67 113.04
Net Interest Margin% 4.81 3.74
Cost Income Ratio% 54.31 65.53
Return On Assets (ROA)% 0.99 0.07
Return On Equity (ROE)% 12.48 0.99

CENTENARY CELEBRATIONS- UPDATES

Bank, on November 26, 2020, celebrated 100 years of its glorious existence and this was a rare achievement in the corporate world, as there may not be many institutions in this world, which has accomplished this rare feat of achieving this 100 years of legacy. CSB Bank was established in the year 1920 by 11 prominent business families of respectable stature from Thrissur, Kerala, in the name and style of The Catholic Syrian Bank Ltd., to cater to the Banking needs of the local society. With the support and clientele from all communities, the Bank grew from a very tiny Bank into its present position of a Bank with more than 500 branches, pan India. Though the Centenary celebrations for the occasion was planned on a grand scale, due to COVID 19 pandemic, the celebrations were held on a subdued note, in virtual mode on November 26, 2021. During the celebrations, the founders of the Bank were remembered, who had the vision to bring about this institution into being, providing employment and livelihood to 1000s of people. Special thanks were offered to the Management team, staff members and the present Promoters of the Bank, FIH Mauritius Investments Ltd, who had brought about the dynamic and appreciable changes in the Bank, including the change of name from The Catholic Syrian Bank Ltd., to CSB Bank Ltd., so that the Bank could face the future, more confidently. Listing of shares of the Bank during the 100th year of its existence on the bourses was an unparalleled achievement, especially so, because the shares were ultimately listed, post one of the most successful lPOs in the year 2019.

TOTAL BUSINESS

The total business of your Bank stood at Rs.34,528 crore as on March 31, 2021, as against Rs.28,031 crore a year before, registering a y-o-y growth of 23.18%.

DEPOSITS

Aggregate deposits of the Bank as on March 31, 2021 stood at Rs.19,140.04 crore, as against Rs.15,790.68 crore a year before, registering a y-o-y growth of 21.21%.

Total CASA deposits grew by Rs.1,555.21 crore to Rs.6,161.80 crore from Rs.4,606.59 crore of corresponding previous year. Total Term Deposits grew by Rs.1,794.16 crore to Rs.12,978.24crore from Rs.11,184.08 crore of corresponding previous year. Total NRI Deposits grew by Rs.394.28 crore to Rs.4,308.50 crore from Rs.3,914.22 crore of corresponding previous year.

ADVANCES

During the period under review, the Bank's gross advances increased to Rs.15,388 crore against Rs.12,240 crore as on March 31, 2020, registering a y-o-y growth of 25.72%. The gross CD Ratio of the Bank stood at 80.40% against 77.52% in the corresponding previous year.

Gold loan portfolio grew by 61% to Rs.6,131 crore as on 31.03.2021 from Rs.3,800 crore of corresponding previous year, whereas Two Wheeler and Agri & MFI portfolio grew by 119% and 252% in FY 21.

PRIORITY SECTOR LENDING

Priority Sector Advance extended by your Bank grew by

Rs.960.38 crore to Rs.4,934.95 crore from Rs.3,974.57 crore of corresponding previous year.

ASSETS QUALITY

Asset quality of banks is expected to come under further pressure as the impact of Covid-19 pandemic is likely to pose challenges to the financial performance of banks. Non-performing assets of banks have increased sharply in the last quarter of the fiscal on recognition of the un-recognised NPAs in the wake of the Hon'ble Supreme Court direction.

Close monitoring of Special Mention Accounts [SMA] was one of the focus area of your Bank during the just concluded fiscal. For the first time, apart from SMA-1 & 2 accounts, the Bank made it a policy to monitor SMA-0 accounts including Proforma NPAs also in its pursuit of improving asset quality. This helped in containing the stressed assets at historically low levels. Multi-level monitoring of SMA portfolio and monitoring of stressed accounts in the SME segment by dedicated Relationship Managers have paid rich dividends. Tele calling for improving collection of retail loans, collection through external agencies in the two wheeler segment are some of the innovations brought in by the bank in the recent past. Automation of Early Warning Signals [EWS] identification is another important technological improvements made during the financial year. The system helps identifying stress in accounts in early stages itself and take appropriate corrective steps.

By initiating appropriate recovery steps in a time bound manner, the bank could recover / upgrade substantial amounts of NPAs during the year. Account by account follow up of large value NPAs at Head Office level has also proved to be very effective in recovery maximisation.

Compromise / One Time Settlement of NPAs as a strategy was vigorously pursued by the bank for NPA recovery during the year. Major chunk of the NPA recovery achieved is through Compromise / One Time Settlement/ LOK Adalats. By organising Recovery Camps in various locations, substantial retail NPAs could be recovered during the year.

Physical possession of secured assets by moving application before the concerned authority and auction of secured assets under SARFAESI was conducted at few centres to the extent it was permitted by the authorities. Similarly, the bank had also resorted to filing under Revenue Recovery Act, filing of suits in Civil Courts / DRTs as a last resort for recovery of the dues.

The various initiatives taken resulted in cash recovery of Rs.69.23 Crore and up gradation of NPAs to the tune of Rs.12.05 Crore. The Gross NPA level of the Bank as on March 31, 2021 stood at a level of Rs.393.49 Crore as compared to Rs.409.43 Crore in the corresponding period of the previous financial year. The Gross NPA and Net NPA ratios are at 2.68% and 1.17% respectively as against 3.54% and 1.91% respectively in the previous financial year. The provision coverage ratio as on March 31, 2021 improved to 84.89% from the level of 80.02% in the previous year.

Further, during the period under review, your bank could recover Rs.73.01 Crore from the prudentially written off portfolio. Interest recovery during the period amounted to Rs.19.42 Crore.

During the current financial year also, your bank's focus would be on arresting fresh delinquencies through close monitoring and recovery of NPAs by initiating appropriate and timely recovery steps.

FINANCIAL PERFORMANCE

Net Interest Income (NII) increased to Rs.941.39 crore in FY 2020 21 as against Rs.592.29 crore in FY 2019 20.

Treasury Income increased to Rs.125.12 crore in FY 2020 21 from Rs.30.20 crore in FY 2019 20. Non Treasury Other Income increased to Rs.275.70 crore in FY 2020 21 from Rs.191.41 crore in FY 2019 20.

Provision other than taxes increased by Rs.174.08 crore (118.76%) from Rs.146.58 crore to Rs.320.66 crore.

The Operating Profit for the year under review was Rs.613.21 crore before taxes and provisions as against

Rs.280.58 crore for the year 2019-20 mainly on account of increased net interest income and other income.

The Net Profit for the year was Rs.218.40 crore as compared to a Net Profit of Rs.12.72 crore during the previous year

DIVIDEND

The Board of Directors of the Bank have expressed their inability to recommend dividend for the financial year ended March 31, 2021 in view of the restrictions under Section 123 (1) of the Companies Act, 2013 that no company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company for the current year and also inadequacy of profits available for dividend after the mandatory appropriations to the reserves.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE BANK

There are no material changes and commitments, affecting the financial position of the Bank which has occurred between the end of the financial year of the Bank i.e., March 31st, 2021 and the date of the Directors' Report i.e., July 05, 2021.

PAID-UP CAPITAL AND RESERVES

As on March 31st, 2021, the Paid up Equity Capital of the

Bank stood at Rs.173.48 crore comprising 173,485,827 fully paid up Equity Shares of Rs.10/- each. The free reserves and surplus after adjusting debit balance in Profit and Loss Account stood at Rs.1,580.21 crore as on March 31st, 2021 as against Rs.1,460.37 crore as on March 31st, 2020.

CAPITAL ADEQUACY

As per the Basel III Capital Adequacy Framework, the Capital to Risk Weighted Assets Ratio (CRAR), as assessed by the Bank as on March 31st, 2021, is 21.37 %. This is much higher than the minimum CRAR of 10.875% stipulated by the Reserve Bank of India.

The Tier I and Common Equity CRAR stood at 19.96%, well above the minimum of 7% and 5.5% respectively.

ALLOTMENT OF SHARES

The Bank on March 30, 2021, allotted 30,000 equity shares under the CSB Employee Stock Option Scheme 2013 for an issue price of Rs.147.25 per share (Rs.10/- towards share capital and Rs.137.25 towards share premium). Consequently, the Issued and Subscribed Share Capital of the Bank stands increased from Rs.1,73,45,58,270/- to Rs.1,73,48,58,270/- and that of the Share Premium account of the Bank, from Rs.1791,69,62,366.74 to

Rs.1792,10,79,866.74.

PROMOTER HOLDING - FIH MAURITIUS INVESTMENTS LTD (FIHM).

Pursuant to approval accorded by the shareholders by way of special resolution passed in the Extraordinary General Meeting of the Bank held on March 21, 2018 and in terms of Reserve Bank of India approval vide letter DBR.

PSBD.No.341/16.1.060/2018 19 dated July 12, 2018 and

DBR.PSBD.No.1643/ 16.01.060/2018-19 dated August 27, 2018 and approval of Department of Financial Services (DFS), Ministry of Finance, Government of India vide letter

No. F.No.26/5/2018 BOA dated October 9, 2018, FIH

Mauritius Investments Ltd (FIHM), promoter of the Bank holds 86,262,976 shares which constitute 49.72 % in the paid up capital of the Bank.

Out of the 86,262,976 shares held by FIHM in the Bank, 69,394,331 are locked-in until August 7, 2024, as advised by Reserve Bank of India in terms of its approval to FIHM to acquire up to 51 % in the post issue paid-up capital of the Bank. This 69,394,331 shares includes the minimum promoters' contribution required to be locked-in and the same was locked in for a period of three years from the date of allotment of shares under the Initial Public offer of the Bank, completed on December 2, 2019, pursuant to Regulation 16 and other applicable regulations of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Pursuant to Section 12(2) of Banking Regulation Act and a Gazette Notification no. DBR.PSBD. No. 1084/16.13.100/2016-17 dated July 21, 2016, voting rights of FIHM are currently capped at 26% of the total voting rights of the Bank.

FIHM holding in the Bank is subject to the dilution schedule of the said investment as mandated by Reserve Bank of India, vide letter dated DBR.PSBD.No.1643/ 16.01.060/2018-19 dated August 27, 2018. Dilution schedule is spread over a period of fifteen years from the date of completion of their investment in the Bank.

FIHM is an investment holding company incorporated under the laws of Mauritius. FIHM is wholly owned by Fairfax India Holdings Corporation (Fairfax India), a Fairfax group company. Founded in 2014, Fairfax India is a publicly listed Toronto-based investment holding company whose objective is to achieve long-term capital appreciation by investing in Indian businesses. With a permanent capital base, Fairfax India takes a long-term value approach towards its investments in India. Fairfax India is controlled by Fairfax Financial Holdings Limited (Fairfax Financial).

Fairfax Financial is a publicly listed Toronto-based holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management. Fairfax Financial has been under present management since 1985. Mr. V. Prem Watsa has been the Chairman and CEO of Fairfax Financial since 1985 and the Chairman of Fairfax India since its inception in 2014.

FIHM's investment in the Bank is in tune with Reserve Bank of India vide Master Direction No. DBR. PSBD.

No.56/16.13.100/2015 16 dated November 19, 2015

‘Prior approval for acquisition of shares or voting rights in Private Sector Banks' and Reserve Bank of India Master Direction DBR.PSBD.No.95/16.13.100/2015-16 May 12, 2016 on ‘Ownership in Private Sector Banks, Directions, 2016.'

CREDIT RATING

CRISIL, vide letter dated March 19, 2021, has reaffirmed the rating ‘CRISIL A1+' to the Rs.2,000 crore Certificate of Deposits Programme and Rs.2,000 crore Short Term Fixed Deposits Programme of the Bank.

CRISIL, vide letter dated June 3, 2021 has assigned ‘CRISIL A /Stable' rating to the proposed Rs.500 Crore Tier II, Basel III compliant bonds issue Programme of the Bank. The bonds issue programme the Bank is under initial stage and has to be materialised.

DEPOSITS ISSUANCE PROGRAMME

Bank under the Certificate of Deposits Programme, raised Rs.1,160 crore from various Mutual funds and Banks during the period under review, with an amount of Rs.660 Crore outstanding as on 31.03.2021. Bank has not raised deposits under the Short Term Fixed Deposits Programme.

ISSUE OF EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS

As on the date of this Report, the Bank has not issued any equity shares with differential voting rights.

ISSUE OF SWEAT EQUITY SHARES

As on the date of this Report, the Bank has not issued any sweat equity shares.

EMPLOYEES STOCK OPTION SCHEMES

1. CSB Employees Stock Option Scheme 2013

Pursuant to receipt of approval of the shareholders by postal ballot on August 18, 2014, the Bank had formulated a stock option scheme called "CSB Employees Stock Option Scheme 2013" ("ESOS 2013" or "Scheme"). Pursuant to clause 26.2 of the scheme, the Board, vide resolution dated May 23, 2019, amended the scheme for the purpose of compliance with SEBI (Share Based Employee Benefits) Regulations, 2014, considering Initial Public Offering ("IPO") of shares of the Bank in the year 2019.

The Scheme was effective from April 1, 2013. The scheme envisages to offer long term share based employee benefits as performance incentive to select employees, enable value creation for shareholders by aligning employees' interests with that of the Bank, and to attract, retain, and motivate high quality talent.

The scheme will be administered by the Nomination & Remuneration Committee of the Board. Under the Scheme, the Bank can offer, issue and allot Equity Shares not exceeding 5% of the issued Equity Shares of the Bank at any point of time, which was capped pursuant to the Board vide resolution dated May 23, 2019, at 20,92,356 equity shares, being shares/ options reserved of not exceeding 5% (five per cent) of the issued equity shares of the Bank with reference to issued equity shares of the Bank as on August 18, 2014 i.e., date of approving the scheme by shareholders.

Against the options granted in the earlier year, for a term of 10 years (including vesting period) and against those options remaining in force, an equal number of equity shares will be allotted to the beneficiary upon exercise of the option, within the said period.

Under the Scheme, 8,20,000 stock options were granted over a period of time since June 2015. Out of 8,20,000, granted, 7,90,000 options were lapsed over a period of time and 30,000 options were exercised by one grantee in the financial year 2021. All the Options granted and exercised shall carry an exercise price of Rs.147.25 per option. The Bank, on April 8, 2021, obtained trading approval for the shares allotted pursuant to the option exercised and allotted on March 30, 2021.

Pursuant to the Board, vide resolution dated May 23, 2019, the Bank decided not to make any fresh grants under the ESOS scheme-2013, under any circumstances and the scheme would continue only to facilitate exercise of the options, already granted under the scheme and the scheme will continue till such period only so to facilitate to exercise the option already granted. Post allotment of 30,000 shares pursuant to exercise of options granted in 2015 and the rest of the options granted were lapsed over a period of time, the Scheme stands automatically discontinued with effect from March 31, 2021, as per Board, vide resolution dated May 23, 2019.

2. CSB Employees Stock Option Scheme 2019

The Bank, on receipt of approval of the shareholders by postal ballot on May 4, 2019, has formulated a stock option scheme called "CSB Employees Stock Option Scheme 2019" ("ESOS 2019" or "Scheme"). The Scheme is in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014. The 2019 ESOS Scheme was effective from May

4, 2019. The scheme is intended to promote the culture of employee ownership as well as to attract, retain, motivate and incentivize talents in the Bank. The Scheme shall be administered through an employee stock option trust ("ESOS Trust") in the nature of an irrevocable employee welfare trust in due compliance with the applicable laws. Under the Scheme, the Bank, on July 12, 2019, allotted 50,00,000 equity shares to CSB ESOS Trust, at an issue price of Rs.10/- per share. Under the trust route, the Bank allots shares to the trust and the trust will transfer the shares to the eligible employees at the time of exercise of option by eligible employees on meeting terms of grant fixed by the Nomination & Remuneration Committee. In case of trust route of issuance of ESOPs, the trust on its own will not have funds to be able to acquire the shares from the Bank as the trust is not a business trust and is specifically created with the objective of issuance of ESOPs to the employees. Trust has to find out other avenues for sourcing of fund for purchasing shares from the Bank. In terms of Section 20 of the Banking Regulation Act, 1949, the Bank cannot lend to trust to purchase its own shares.

Being a Pre-IPO Scheme, in terms of Regulation 12(1) of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 ("SEBI SBEB Regulations"), any fresh grant of Options can be made under ESOS 2019 in case such ESOS 2019 is in compliance with the SEBI SBEB Regulations and ratified by the members of the Bank post IPO. Accordingly, the ESOS 2019 was placed before the members at the Annual General Meeting held on July 20, 2020 for ratification though, the ESOS 2019 as well as the Trust originally introduced, were already in conformity with the SEBI SBEB Regulations and ratification obtained. Besides, the Scheme was amended at the Annual General Meeting of the Bank held on July 20, 2020, inter alia, to increase the Options Reserve by an additional quantum of 1,16,72,791 options. The source of corresponding number of shares equivalent to 1,16,72,791 options shall be in the form of (i) fresh issue of shares up to 30,00,000 shares and (ii) secondary acquisition by the Trust up to 86,72,791 shares. With this, the total Options Reserve under ESOS 2019 stood at 1,66,72,791 options. A few other modifications were also made in the Scheme as per the prevailing regulations.

Under the Scheme, 10,38,150 stock options were granted in the financial year 2020-21 and 8,88,150 options were in force at the end of the financial year.

Out of the 8,88,150 options which were in force as on March 31, 2021, 4,55,000 options were granted on different dates carry an exercise price of Rs.10 per option and 4,33,150 options granted on March 30, 2021 carry an exercise price of Rs.75 per option. All the options granted have to be vested subject to the vesting conditions and be exercised within the period as per the terms of the respective grant and the Scheme.

4,33,150 stock options referred above, were granted to Managing Director & CEO under the scheme @

Rs.75/- per option on March 30, 2021 as performance grant for the period from December 9, 2016 to March 31, 2020. The said grant is as per approval of Reserve Bank of India dated March 23, 2021. The

Bank originally sought approval of Reserve Bank of India for grant of 34,70,000 stock options were reduced initially to 18,00,000 options and subsequently to 17,86,400 options against which approval has been received from RBI for grant of stock options for a fair value of Rs.7.5 crore for the same period with a condition that the intrinsic value of options to be granted shall not be more than

Rs.7.5 crore as on the date of RBI approval i.e. March 23, 2021. Accordingly, the Bank granted 4,33,150 options equivalent to the intrinsic value as per RBI letter. Options granted to him will be vested equally over a period of three years and shall be exercised over the period commencing from the date of 1st vesting of Options and ending on or before March 31, 2024.

3. Amendment proposed in the CSB Employees Stock Option Scheme 2019

Bank, in the ensuing Annual General Meeting proposes to amend the scheme subject to approval of members of the Bank, to comply with the requirements of the Guideline No. DOR.Appt.

BC.No.23/ 29.67.001/2019-20 dated November

4, 2019 issued by the Reserve Bank of India ("RBI Guidelines") and approvals issued thereunder in specific cases of retirement and general cases of retirement of option grantees, by allowing vesting of unvested employee stock options ("Options") after the date of retirement as determined by the Nomination and Remuneration Committee ("Committee") of the Board of Directors of the Bank. This is especially relevant as the Bank grants Options as part of remuneration on the basis of annual pay cycle which vests over at least next 3 (three) years in a staggered way. In case of retirement in the meantime before completion of vesting, the unvested Options would lapse in case not allowed to vest, resulting in loss of Options/ remuneration of the past annual pay cycle for which Bank would have consumed the concerned option grantee's contribution. However, any vesting after retirement shall be subject to usual malus and clawback requirement as prescribed under the Scheme read with RBI Guidelines.

4. CSB Employees Stock Option Scheme – Statutory Compliance

A Certificate of Statutory Auditors pursuant to Regulation 13 of SEBI (Share Based Employee Benefits) Regulations, 2014, that the Bank's above mentioned Schemes have been implemented in accordance with the SEBI (Share Based Employee Benefits) Regulations and the Resolutions passed by the Shareholders for the 2013 and the 2019 Scheme, will be placed to the Annual General Meeting for the scrutiny of Shareholders.

The disclosure as required as per rule 12(9) of the Companies (Share Capital and Debentures) Rules, 2014 and Regulation 14 of SEBI (Share Based Employee Benefits) Regulations, 2014 in respect of the stock options granted by the Bank under the schemes forms part of this report as Annexure-I.

BUSINESS RESPONSIBILITY REPORT

In compliance with Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Business Responsibility Report of the Bank for the FY 2020-21, in the format as specified by SEBI, describing the initiatives taken by the Bank from an environmental, social and governance perspective, forms part of this Report as Annexure-II.

The same has been hosted on the website of the Bank and can be accessed at https://csb.co.in/investor-relations > General meetings > Annual General Meeting – 2021.

BUY-BACK OF SHARES OR PROVISION OF FINANCIAL theASSISTANCE FOR PURCHASE OF THE BANK'S SHARES

The Bank has not effected any buy back of its shares or provided any financial assistance for purchased subscription of its shares, to any persons including directors and employees of the Bank in terms of Section 67 of the Companies Act, 2013.

REDEMPTION OF CSBL BONDS

Bank has not issued any bonds during the period under review. Bonds issued by the Bank in earlier periods were redeemed as per the redemption schedule and no bonds were outstanding at the beginning and end of the financial year.

DEPOSITS

Being a banking company, the disclosures required as per Rule 8(5)(v)&(vi) of the Companies (Accounts) Rules, 2014, read with Sections 73 and 74 of the Companies Act, 2013 are not applicable to our Bank.

SUBSIDIARY COMPANY

The Bank does not have any subsidiaries, joint ventures or associate companies. There are no companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during the year under review.

Bank has formulated a Policy for determination of material subsidiary pursuant to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the same is displayed on the website of the Bank at: https://www.csb.co.in/pdf/Policy_ for_Determining_Material_Subsidiaries.pdf

RISK MANAGEMENT POLICY

The Bank has a comprehensive policy framework which contains separate policies for identification, measurement, monitoring & control and mitigation of all material risks including but not limited to credit, market, operational, liquidity and other Pillar II risks. The Bank has put in an integrated risk management policy which ensures independence of the risk governance structure. IRMD Charter is included in the Integrated Risk Management policy. The risk management policy details the principles, rules and guidelines to be adopted by the Bank for managing and controlling various kinds of risks through various sub policies. The policies are implemented in an uninterrupted, reliable and comprehensive manner across the entire bank. The details of risk management practices are provided in the Management Discussion and Analysis Report annexed to the Director's Report.

WHISTLE BLOWER POLICY / VIGIL MECHANISM

Bank has put in place a Whistle Blower Policy / Vigil Mechanism to report concerns about unethical behaviour, violations of system and procedures of our Bank, violation of law, questionable business practices or grave misconduct by employees of the Bank that could lead to financial loss or reputation to the Bank, actual or suspected fraud and others. Whistle Blower Policy is published in the website of the Bank and thereby awareness is given to all the stake holders about the same so as to make the said Policy and the Scheme an effective tool in the reporting and prevention of frauds. As per the Policy /Mechanism, Directors and employees of the Bank, customers, stakeholders, Non-Governmental Organizations (NGO) and others can lodge complaints / disclosures. The Audit Committee of the Board will oversee the vigil mechanism through the Committee processes. The Policy /Mechanism provides reassurance of protection to the whistle blower from victimisation, discrimination or reprisals for having blown the whistle in the interest of the Bank with good faith. The Chairman of Audit Committee shall directly hear grievances of victimisation of employees and directors, who used vigil mechanism to report genuine concerns. The Bank affirms that no employee has been denied access to the Audit Committee of the Board under the Whistle Blower/ Vigil Mechanism in the Bank.

A topic on Whistle Blower Policy available in the Bank, and Ethics & Code of conduct has been included in every session of the training programme conducted at the Bank's staff Training College for enhancing awareness of fraud risk and for promoting a culture of compliance among the employees. Bank is ensuring that the systems and procedures are scrupulously followed by all the employees of the bank. Bank is taking stringent actions against employees who do not comply the instructions of the Bank.

Bank, based on RBI directions, has put in place a Fraud Risk Management Policy that covers the various controlling, monitoring and surveillance mechanism of the Bank to prevent frauds and to manage the risk of loss in the event of a fraud. As a part of Vigilance all the cases of frauds reported in the Bank are investigated in detail.

Lacunae if any observed during the course of investigation are plugged and cases where systemic corrections are required, are placed before the Audit Committee for corrective measures / necessary directions. Apart from investigation of fraud, Vigilance Department also conducts Preventive Vigilance Audits to ensure the effectiveness of fraud prevention mechanism in the Bank. This will promote a culture of compliance among the employees. Wherever deficiencies are observed the branches are suitably cautioned so that such deficiencies are not recurred and incidents of frauds can be minimized. Vigilance Department also issue caution advises on a regular basis that disseminates various modus operandi of frauds in the banking industry including that has happened in our Bank. This will enable the Branches / Offices to prevent similar kind of fraudulent attempts in future.

Bank has taken all efforts to prevent frauds by strengthening the existing control measures and by reiterating the systems and procedures to update and alert the employees. Bank has a well-organized Inspection Department which conducts regular and comprehensive inspections (RBIA) of branches and offices at specified intervals and also oversees all other Audits and Inspections of the Bank. Over the last few years the Bank has taken several measures to plug the gaps in the areas of appraisal, monitoring, internal systems etc. to strengthen the overall control system on loan assets. The Bank had strengthened the internal audit machinery, functions of vigilance department and put in place appropriate mechanism, information systems and required infrastructure to prevent recurrence, early detection of frauds on an ongoing basis.

MANAGEMENT DISCUSSION AND ANALYSIS The Management Discussion and Analysis Report for the year under review as stipulated under Regulation 34(2) (e) of the Listing Regulations is presented in a separate section forming part of this Annual Report.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Bank has implemented adequate procedures and internal control systems which provide reasonable assurance regarding reliability of financial reporting and preparation of financial statements. Bank is operating in a fully computerized environment with Core Banking System supported by diverse application platforms for handling special business such as treasury, trade finance, retail loans, etc. The process of recording of transactions in each application platform is subject to various forms of control such as in built system checks, maker checker authorisations and independent post transaction reviews etc. The financial statements are prepared based on computer system outputs. Responsibility of preparations of financial statements is entrusted to a dedicated unit which is independent of business.

UPDATE ON IND AS IMPLEMENTATION

The Institute of Chartered Accountants of India had issued IND AS (a revised set of accounting standards) which largely converges the Indian accounting standards with International Financial Reporting Standards (IFRS). The Ministry of Corporate Affairs (MCA) had notified these accounting standards (IND AS) for adoption in 2015 and issued the road map for implementation of new Indian Accounting Standards (IND AS) in January 2016. Banking companies, were required to implement Indian Accounting Standards (IND AS) from April 1, 2018 onwards, with comparatives for the year beginning April 1,

2017. RBI vide First Bi monthly Monetary Policy 2018 19 on April 5, 2018 had deferred the implementation of IND AS by one year pending necessary legislative amendments to the Banking Regulation Act, 1949 as also the level of preparedness of many bank. RBI vide Circular DBR. BP.BC.

No.29/21.07.001/2018 19 dated March 22, 2019 has further deferred the implementation of IND AS till further notice as the legislative amendments recommended by the Reserve Bank of India was under consideration of the Government of India.

The Bank had commenced the process of IND AS implementation from FY 2016 17 itself. As per

Directions, the Bank has taken the following further steps towards implementation of IND AS during the year 2020 21:

a) Submitted quarterly Performa IND AS financial statements, for the on quarterly basis as required by RBI.

b) The Bank will continue its preparedness towards migration to IND AS as per regulatory requirement and to liaise with RBI and industry bodies on various aspects pertaining to IND AS implementation.

CORPORATE GOVERNANCE

The Bank continues its endeavour to adopt the best prevalent Corporate Governance Practices. A separate section on Corporate Governance standards followed by your Bank and the relevant disclosures as stipulated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies Act, 2013 and the rules made thereunder is enclosed as an annexure to this report.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY THE BANK

Pursuant to Section 186 (11) of the Companies Act, 2013, the provisions of Section 186 of Companies Act, 2013, except sub section (1), do not apply to a loan guarantee given or security provided or any investment made by a banking company in the ordinary course of business.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All transactions with related parties were entered in the books as prescribed during the financial year were in the ordinary course of business only. However, there were no absolute comparable data available to compare the terms of contracts or arrangements so as to establish such transactions were on arm's length basis, the Bank decided to consider such contracts or arrangements as related party transactions and obtained requisite approvals for the said transactions as prescribed in the section 188 of the Companies Act, 2013, as amended and Rule 15 of the Companies (Meetings of Board and its Powers) Rules, 2014 and further reported the same as related party transactions.

As per the policy on dealing with Related Party Transactions, Audit Committee shall review, at least on a quarterly basis, the details of Related Party Transactions entered into by the Bank pursuant to each of the omnibus approval given and such omnibus approvals shall be valid for a period not exceeding one financial year and shall require fresh approvals after the expiry of such financial year.

Bank has also obtained omnibus approval of the Audit RBI Committee for the respective transaction under 188 of the Companies Act, 2013 and Rule 6A of the Companies (Meetings of Board and its Powers) Rules, 2014, though no transaction were consummated during the period ended March 31, 2021.

There were no materially significant related party transactions with the Bank's Directors, Management or their relatives, which could have had a potential conflict with the interests of the Bank.

The particulars of contracts or arrangements with related parties entered into during the year under review in terms of Section 188(1) of the Companies Act, 2013 are provided in Form AOC 2 as Annexure -III in terms of 134(3)(h) of the

Companies Act, 2013.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The CSR policy of the Bank aims to identify and support all projects/programs/subjects undertaken as part of the Bank's Corporate Social Responsibilities/commitments within the framework of Schedule VII of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended, from time to time. The Policy was last amended in March 2021 to incorporate the requirements of the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021.

The main objective of CSR policy of the Bank is to make CSR a key business process for sustainable development of the society. The CSR Policy will guide and govern the Bank's activities in focus areas namely rural development and inclusiveness and other areas of special interest, ultimately for sustainable development of the society, across.

The Bank continued with CSR activity during the period under view in a limited way though it was not mandatory to spend for the said period in terms of Section 135 of the Companies Act, 2013 and CSR Rules 2014 as the average net profit of the Bank for the last three years was in the negative zone. As a responsible citizen, the Bank will continue with a slew of measures for fulfilment of its commitment to the society as a whole. The Bank, in terms of the requirements of Section 135 of the Companies Act, 2013 and CSR Rules 2014, has set up a Board level Corporate Social Responsibility (CSR)

Committee to look after the CSR initiatives of the Bank. The CSR Committee, shall (a) formulate and recommend to the Board, a Corporate Social Responsibility Policy as per Schedule VII of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. (b) recommend the amount of expenditure to be incurred on the activities as part of the CSR programme of the Bank; (c)monitor the corporate social responsibility policy of the company from time to time and (d) formulate and recommend to the Board, an annual action plan in pursuance of its CSR policy.

The brief outline of the CSR Policy, overview of the programs undertaken by the Bank, the composition of the CSR Committee, prescribed CSR expenditure and details of the amounts spent by the Bank on CSR activities during the year under review, have been provided in Annexure - IV to this report.

AUDITORS a) Statutory Auditors

The Statutory Central Auditors viz. B S R & CO. LLP, 5th Floor, Lodha Excelus, Apollo Mills Compound, N. M. Joshi Marg, Mahalaxmi, Mumbai- 400011 Maharashtra, Firm Regn. Number: 101248W/W-100022, who were appointed at the 99th Annual General Meeting held on July 20, 2020 will be retiring at the ensuing Annual General Meeting, and are eligible for reappointment as per the guidelines of the Reserve Bank of India (RBI).

In terms of Reserve Bank of India Guidelines No. DoS.CO.ARG/SEC.01/08.91.001/2021-22 dated April 27, 2021 regarding "Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) in Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs)" read with FAQ dated June 11, 2021, the statutory audit of the entities with asset size of Rs.15,000 crore and above as at the end of previous year, should be conducted under joint audit of a minimum of two audit firms and accordingly the Bank has to appoint two audit firms from financial year 2021-22 onwards as per the guidelines.

In line with said guidelines, the Board on recommendation of the Audit Committee of the Board, recommends the appointment of

B S R & CO. LLP, Chartered Accountants, 5th Floor, Lodha Excelus, Apollo Mills Compound, N. M. Joshi Marg, Mahalaxmi, Mumbai-400011, Maharashtra, Firm Regn. Number: 101248W/W-100022, for a period of two (2) years together with Mukund M. Chitale & Co, Chartered Accountants, 2nd Floor, Kapur House, Paranjape B Scheme Road No.1, Vile Parle (East), Mumbai – 400057, Firm Registration Number : 106655W, being the first preferred choice of firm to the RBI for the second joint statutory auditor, for a period of three (3) years as the Joint Statutory Auditors of the Bank, to hold office from the conclusion of 100th Annual General Meeting till the conclusion of the 102nd and 103rd Annual General Meetings of the Bank respectively, subject to the specific approval of Reserve Bank of India for each year during their tenure in terms of Section 30(1A) of the Banking Regulation Act, 1949, for the purpose of audit of the Bank, including certifications, reporting on internal financial controls, of the Bank's accounts at its head office, branches and all the controlling and other offices.

Bank has received consent from the said firms and confirmation to the effect that they are not disqualified to be appointed as the Statutory Central Auditors of the Bank in terms of the provisions of the Companies Act, 2013 and rules made here under and Reserve Bank of India Guidelines dated April 27, 2021. Accordingly, the Board of Directors recommended the appointment of B S R & CO. LLP, Chartered Accountants, 5th Floor, Lodha Excelus, Apollo Mills Compound, N. M. Joshi Marg, Mahalaxmi, Mumbai-400011, Maharashtra, Firm Regn. Number: 101248W/W-100022, for a period of two (2) years together with Mukund M. Chitale &Co, Chartered Accountants, 2nd Floor, Kapur House, Paranjape B Scheme Road No.1, Vile Parle (East), Mumbai – 400057, Firm Registration Number : 106655W, being the first preferred choice of firm to the RBI for the second joint statutory auditor, for a period of three (3) years as the Joint Statutory Auditors of the Bank, to hold office from the conclusion of 100th Annual General Meeting till the conclusion of the 102nd and 103rd Annual General Meetings of the Bank respectively, on such remuneration to be decided subject to the approval of Reserve Bank of India(RBI) in terms of Section 30(1A) of the Banking Regulation Act, 1949 and approval of the shareholders of the Bank in terms of Section 139, 142, 143 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 and other applicable rules.

Pursuant to the Regulation 33(1) (d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Joint Statutory Auditors have confirmed that they are subjected to the peer review process of the Institute of Chartered Accountants of India (ICAI) and that they hold a valid certificate issued by the Peer Review Board of ICAI.

Independent Auditors' Report

B S R & CO. LLP, Chartered Accountants Mumbai, Firm Regn. Number: 101248W/W-100022 Statutory Central Auditors of the Bank, have audited the accounts of the Bank for the FY 2020-21 and their Report is annexed. Pursuant to Section 143(3)(i) of the Companies Act, 2013, the Statutory Auditors have also reported on the adequacy and operating effectiveness of the internal financial controls system over financial reporting, which has been enclosed as "Annexure A" to Independent Auditor's Report. There are no qualifications, reservations or adverse remarks made by the Statutory Auditors in their report for the FY 2020-21.

b) Secretarial Auditors and Secretarial Audit Report

Pursuant to Section 204 of the Companies Act 2013, the Bank appointed "M/s. SVJS & Associates", Company Secretaries, Kochi as its Secretarial Auditors to conduct the secretarial audit of the Bank for the Financial Year 2020 21. The Bank produced all necessary records to the Secretarial Auditors for smooth conducting of their Audit. The Report of Secretarial Auditor for the said period is annexed to this report as Annexure -V. There are no qualifications, reservations or adverse remarks made by the Secretarial Auditors in their report for the FY 2020-21.

COMPLIANCE TO SECRETARIAL STANDARDS

The relevant Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) related to the Board Meetings and General Meeting have been complied with by the Bank.

TRANSFER OF UN-CLAIMED/UN-PAID DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

Dividend transferred to Unpaid Dividend account and remaining unpaid or unclaimed for a period of seven years from the date of such transfer, has to be transferred to Investor Education and Protection Fund as per Section 124 (5) of the Companies Act, 2013. In compliance with above, the Bank on October 30, 2020, transferred Rs.1,417,817 /- to the above Fund, being the unclaimed dividend for the financial year 2012 13.

TRANSFER OF EQUITY SHARES TO INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY

In terms of the provisions of the Section 124(6) of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, (as amended) and other applicable rules, notifications and circulars, if any, every company is required to transfer the shares, in respect of which dividend remains unpaid / unclaimed for a period of seven (7) consecutive years, to the Investor Education Protection Fund (IEPF) Authority.

To comply with the above, the Bank had on November 18, 2020, transferred 104,932 shares, comprising of 826 folios/records, to Investor Education and Protection Fund Authority through M/s. Central Depository Services (India) Limited (CDSL), in respect of which dividend was not claimed for consecutive 7 years from the date of transfer to unpaid dividend account of the Bank for the respective year(s).

UNCLAIMED SHARE APPLICATION MONEY

Unclaimed Share application money in respect of Rights issue 2013 and allotment completed on March 30, 2013 was due for transfer to the Investor Education and Protection Fund after the due date i.e., March 30, 2020, as per provisions of the Section 125(2) (h) of the Companies Act, 2013.

To comply with the above requirements, the Bank on April 3, 2020 transferred Rs.1,18,260/- to the Investor Education and Protection Fund, being the unclaimed share application money in respect of Rights Issue 2013.

COMPENSATION/ REMUNERATION POLICY

The Bank has formulated a Compensation Policy which deals with the compensation and benefits of all the employees of the Bank and Directors including Part time Chairman, Managing Director & CEO, Executive and Non

Executive Directors and the details of the same have been included in the Report on Corporate Governance, which forms part of this Report.

The Bank has fine-tuned the policy in the financial year under review, in line with the changes proposed by Reserve Bank of India ‘Guidelines on Compensation of Whole Time Directors/ Chief Executive Officers/ Material Risk Takers and Control Function staff' dated November 4, 2019.

NOMINATION POLICY

Bank adopted policy for appointment and orderly succession of appointment of Part time Chairman,

Managing Director & CEO, Directors, Key Managerial Personnel and Senior Management team in the Bank. The details of the same have been included in the Report on Corporate Governance, which forms part of this Annual Report.

The Nomination policy is displayed on the website of the Bank at: https://www.csb.co.in/pdf/NominationPolicy.pdf

DETAILS OF DIRECTORS/EMPLOYEES REMUNERATION

The details of Directors/Employees remuneration, etc., as required under Sec 197(12) of the Companies Act, 2013, read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, forms part of this Report as Annexure-VI.

Besides, the details of remuneration paid to the Managing Director & CEO, Directors and Key Managerial Personnel forms part of this report as Annexure-VII.

BOARD OF DIRECTORS

The composition of the Board of Directors is governed by the Banking Regulation Act, 1949, Circulars and Guidelines issued by the Reserve Bank of India, from time to time, the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in accordance with the best practices in corporate governance adopted by the Bank. As on the date of this report, the Board comprises of Eight Directors. The directors possess rich experience and specialized knowledge in various areas of relevance to the Bank.

The Board functions as the governing body and also through various Committees constituted to oversee specific areas. Policy formulation, setting up of goals, evaluation of performance and control functions vest with the Board. The Committees have oversight of operational and supervisory issues assigned to them by the Board, from time to time.

Appointment/changes in the Board of the Bank since the last Board's report dated June 22, 2020 is as given under:

APPOINTMENT OF NON-EXECUTIVE DIRECTORS

Mr. Sumit Maheshwari (DIN: 06920646) was reappointed as a director, liable to retire by rotation at the 99th Annual General Meeting held on July 20, 2020.

PART-TIME CHAIRMAN

Mr. Madhavan Menon (DIN: 00008542) ceased to be the Part-time Chairman of the Bank with effect from July 22, 2020 upon expiry of his extended tenure of appointment as per Reserve Bank of India letter no. DoR. Appt. no.8065/ 08.36.001/2019-20 dated April 24, 2020. Mr. Madhavan Menon continues on the Board as Non-Executive Director. Mr. Madhavan Menon is one of the two directors nominated by promoters of the Bank, M/s. FIH Mauritius Investments Ltd.

The Board places on record its appreciation of the valuable contributions, advises and services of Mr. Madhavan Menon during his tenure as the Part-time Chairman of the Bank. The Board also took note of the sheer professionalism displayed by Mr. Madhavan Menon during his tenure by sharing unbiased, decisive and professional opinions, keeping in view of all the stakeholders' interest at hand.

Mr. Madhavan Aravamuthan (DIN: 01865555) was appointed as the Part-time Chairman of the Bank in place of

Mr. Madhavan Menon for the period starting from August 10, 2020 and up to June 28, 2022 on receipt of approval of Reserve Bank of India pursuant to the section 10B(1A) (i) of the Banking Regulation Act, 1949. Mr. Madhavan Aravamuthan has been on the Board of the Bank since December 13, 2018 as an Independent Director.

APPOINTMENT OF MR. PRALAY MONDAL AS DEPUTY MANAGING DIRECTOR

Pursuant to the recommendation of the NRC, the Board at its meeting held on June 8, 2021, approved the appointment of Mr. Pralay Mondal as a Director and the Deputy Managing Director of the Bank, for a period of 5 (five) years, with effect from the date of approval of Reserve Bank of India in terms of Section 35B of the Banking Regulation Act, 1949 and the terms and conditions relating to the said appointment, including remuneration, are subject to the approval of the RBI and the Shareholders of the Bank. During the said period, Mr. Pralay Mondal shall be liable to retire by rotation.

APPOINTMENT OF INDEPENDENT DIRECTORS

Mrs. Sharmila Abhay Karve (DIN: 05018751), was appointed as an Additional Director (Non- Executive, Independent category) of the Bank w.e.f. July 20, 2020 for a period of three (3) years pursuant to the provisions of Section 149,161(1) of the Companies Act, 2013 and Rules made thereunder, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Article 133 of the Articles of Association of the Bank.

Mr. Sudhin Bhagwandas Choksey, (DIN: 00036085), was appointed as an Additional Director (Non- Executive, Independent category) of the Bank w.e.f. March 30, 2021 for a period up to January 30, 2024 pursuant to the provisions of Section 149,161(1) of the Companies Act, 2013 and Rules made thereunder, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Article 133 of the Articles of Association of the Bank.

Mr. Sunil Srivastav (DIN: 00237561), was appointed as an Additional Director (Non- Executive, Independent category) of the Bank w.e.f. June 8, 2021 for a period of three (3) years pursuant to the provisions of Section 149,161(1) of the Companies Act, 2013 and Rules made thereunder, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Article 133 of the Articles of Association of the Bank. Necessary resolutions seeking approval of the members in connection with appointment of Mrs. Sharmila Abhay Karve, Mr. Sudhin Bhagwandas Choksey and Mr. Sunil Srivastav as Independent Directors of the Bank, forms part of the notice of the ensuing Annual General Meeting.

The detailed profile of Mrs. Sharmila Abhay Karve, Mr. Sudhin Bhagwandas Choksey and Mr. Sunil Srivastav recommended for their appointment as Independent

Directors in the ensuing Annual General Meeting will be provided in the Notice of the Annual General Meeting for the benefit of shareholders as per the provisions of the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standard on General Meetings (SS-2).

RETIREMENT OF INDEPENDENT DIRECTOR

Mr. Thomas Mathew (DIN: 01277149), Non- Executive, Independent Director, retired from the office of directorship with effect from September 25, 2020, upon completion of his term of appointment. As per the extant Reserve Bank of India guidelines, prevailing at the time, the upper age limit prescribed for directors in the banking companies was 70 years and Mr. Thomas Mathew was nearing 70 years of age, hence not did not pursue for reappointment.

The Board places on record its appreciation for the valuable contributions made to the Bank and for the support and cooperation extended by Mr. Thomas Mathew during his tenure as an independent director of the Bank. The Board also acknowledged with thanks the professional and unbiased approach that Mr. Thomas Mathew had taken at the Board and the Committee meetings and also his sincere efforts to build up a very strong compliance culture in the Bank.

RESIGNATION OF INDEPENDENT DIRECTOR

Mr. Syed Nagoor Ali Jinnah (DIN: 05238633) resigned from the position of the Non-Executive Independent Director of the Bank with effect from April 19, 2021 on personal grounds of health. Pursuant to Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulation,2015 read with Clause 7B of Part A of Schedule III, Mr. Syed Nagoor Ali Jinnah confirmed that there are no material reasons for his resignation from the position of Independent Director of the Bank other than on personal grounds of health.

The Board places on record its appreciation for the valuable contributions made to the Bank and for the support and cooperation extended by Mr. Syed Nagoor Ali Jinnah during his tenure as an independent director of the Bank. The Board also acknowledged with thanks the professional and unbiased approach that Mr. Syed Nagoor Ali Jinnah had taken at the Board and the Committee meetings.

REAPPOINTMENT OF INDEPENDENT DIRECTORS

Mr. Madhavan's Aravamuthan first term as Non-Executive Independent Director of the Bank ends on June 28, 2022. The Board of Directors post satisfactory evaluation of his performance, recommended reappointment of Mr. Madhavan Aravamuthan as Non-Executive Independent Director of the Bank to hold office for a period of three consecutive years with effect from June 29, 2022 to June 28, 2025.

Mrs. Bhama Krishnamurthy's first term as Independent Director of the Bank ends on September 28, 2021. The Board of Directors post satisfactory evaluation of her performance, recommended reappointment of Mrs. Bhama Krishnamurthy as Independent Director of the Bank to hold office for a period of three consecutive years with effect from September 29, 2021 to September 28, 2024.

Necessary resolutions seeking approval of the members in connection with reappointment of Mr. Madhavan Aravamuthan and Mrs. Bhama Krishnamurthy as Independent Directors of the Bank, forms part of the notice of the ensuing Annual General Meeting.

The detailed profile of Mr. Madhavan Aravamuthan and Mrs. Bhama Krishnamurthy recommended for their reappointment as Independent Directors in the ensuing Annual General Meeting will be provided in the Notice of the Annual General Meeting for the benefit of shareholders as per the provisions of the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standard on General Meetings (SS-2).

INDEPENDENT DIRECTORS- COMPLIANCE STATUS

The Bank fully satisfies the requirements of Section 149 of the Companies Act, 2013 in connection with the appointment of Independent Directors and the following are the Independent Directors of the Bank as on the date of this report.

Sl. No Name of the Independent Director Term up to
1 Mrs. Bhama Krishnamurthy September
(DIN: 02196839) 28, 2021
2 Mr. Madhavan Aravamuthan June 28,
(DIN: 01865555) 2022
3 Mrs. Sharmila Abhay Karve July 19 ,
(DIN: 05018751) 2023
4 Mr. Sudhin Bhagwandas Choksey January 30,
(DIN: 00036085) 2024
5 Mr. Sunil Srivastav June 7, 2024
(DIN: 00237561)

The performance of the Independent Directors is subject to evaluation as per Section 149(8) of the Companies Act, 2013 and read with Schedule IV to the said Act.

Pursuant to Rule 6(3) of The Companies (Appointment and Qualifications of Directors) Rules, 2014, as amended, all Independent directors of the Bank have registered in the Independent Directors Data Bank, as required under rule 6(1) and 6(2) of The Companies (Appointment and Qualifications of Directors) Rules, 2014, as amended. The Board is confident about their integrity, expertise and experience in the relevant functional areas.

DECLARATION BY INDEPENDENT DIRECTORS

All Independent Directors have confirmed of having complied with the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and Regulation 16(1) (b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 that they meet the criteria of independence laid down thereunder. Further, they have also complied with the Code for Independent Directors prescribed in Schedule IV to the Companies Act, 2013 and the Code of Conduct and Ethics for Board of Directors and Senior Management Personnel of the Bank. Based on the declarations submitted by the Independent Directors, Board is of the opinion that, they fulfil the conditions specified in the Act and SEBI LODR and are independent of the management.

Pursuant to rule 6(3) of The Companies (Appointment and Qualifications of Directors) Rules, 2014, the Independent Directors of the Bank have affirmed that, they had registered as an Independent Director in the Independent Directors Data Bank as required under rule 6(1) and 6(2) of The Companies (Appointment and Qualifications of Directors) Rules, 2014 and are also complied with the requirements of passing the online proficiency self-assessment test/exempted from online proficiency self-assessment test in terms of Rule 6(4) of The Companies (Appointment and Qualifications of Directors) Rules, 2014, as amended.

Board is of the opinion that Independent Directors appointed since the date of last report and up to the date of the report are being a person of integrity, and has the necessary knowledge, experience and expertise and also complied requirements of passing the online proficiency self-assessment test/exempted from online proficiency self-assessment test in terms of Rule 6(4) of The Companies (Appointment and Qualifications of Directors) Rules, 2014, as amended for being appointed as an Independent Director of the Bank

FAMILIARIZATION PROGRAMMES OF INDEPENDENT DIRECTORS

All directors including Independent Directors are familiar with their roles, rights and responsibilities in the Bank at the time of appointment and also on a recurrent basis. Bank is also arranging Certification programme in IT and Cyber Security for its directors.

The details of various programmes undertaken/arranged for familiarizing the Independent Directors are disclosed in Corporate Governance Report, which forms part of this Annual Report.

WOMAN DIRECTOR

In terms of the provisions of Section 149(1) of the Companies Act, 2013, the Bank is required to have at least one woman Director on the Board. Currently, there are two women directors on the Board of the Bank. Mrs. Bhama Krishnamurthy (DIN: 02196839) was appointed as a Director since September 3, 2018 and Mrs. Sharmila Abhay Karve (DIN: 05018751) since July 20, 2020.

DIRECTORS RETIRING BY ROTATION

In terms of Section 152 of the Companies Act, 2013, Non

Executive Director, Mr. Madhavan Menon (DIN: 00008542) shall retire by rotation and being eligible, offers himself for re appointment at the ensuing Annual General Meeting

(AGM).

Mr. Madhavan Menon (DIN: 00008542) was at first appointed as an Additional Director of the Bank with effect from September 03, 2018 under the Section 161(1) of the Companies Act 2013 and regularized his appointment as Director at 97th AGM held on September 29, 2018, liable to retire by rotation. Mr. Madhavan Menon was the Part-time Chairman of the Bank for the period from April 22, 2019 to July 21, 2020.

Mr. Madhavan Menon is one of the two directors nominated by promoters of the Bank, M/s. FIH Mauritius Investments Ltd.

Approval of the members of the Bank is being requested for re-appointment of Mr. Madhavan Menon as Non-Executive, Non-Independent Director of the Bank. The detailed profile of Mr. Madhavan Menon recommended for reappointment in the ensuing Annual General Meeting will be provided in the Notice of the Annual General Meeting for the benefit of shareholders as per the provisions of the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standard on General Meetings (SS-2).

APPOINTMENT/ CHANGES IN KEY MANAGERIAL PERSONNEL

Mr. C.VR. Rajendran, Managing Director & CEO, Mr. B.K.Divakara , Chief Financial Officer and Mr. Sijo Varghese, Company Secretary are the Key Managerial Personnel as per the provisions of the Companies Act, 2013.

There were no changes in the Key Managerial Personnel since the date of last year's report.

BOARD AND ITS COMMITTEES Number of Meetings of the Board

Regular meetings of the Board are held to discuss and decide on various business policies, strategies and other businesses. Due to business exigencies, certain decisions are taken by Board through resolution passed by circulation from time to time.

The Board met Fourteen (14) times during the FY 2020 21 and the gap between the said meetings did not exceed the limit of 120 days, as prescribed under the relevant regulations. Detailed information on the meetings of the Board is included in the report on Corporate Governance, which forms part of this Annual Report.

Committees of the Board

The Bank has various sub committees of the Board which have been formed as part of the best corporate governance practices and/or in compliance with the requirements of the relevant provisions of applicable laws and the regulatory prescriptions.

The Bank has the following Sub Committees of the Board:

1. Audit Committee.

2. Nomination & Remuneration Committee.

3. Corporate Social Responsibility Committee.

4. Risk Management Committee.

5. IT Strategy Committee.

6. Stakeholders' Relationship Committee.

7. Customer Service Committee.

8. Management Committee.

9. NPA Management Committee.

10. Committee for Monitoring Large Value Frauds (CMF)

The details with respect to the compositions, powers, roles, terms of reference, etc., of the above Committees are given in detail in the ‘Report on Corporate Governance' which forms part of this Annual Report.

AUDIT COMMITTEE

Constitution of Audit Committee in the Bank in terms of the extant guidelines of Reserve Bank of India (RBI), provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

The Committee consists of three members as on date of the Report. The Committee is chaired by Mrs. Sharmila Abhay Karve, Independent Director, who is a Chartered Accountant. The other members of the Committee are Mr. Madhavan Menon (Non-Executive, Non-Independent) and Mr. Madhavan Aravamuthan (Part time Chairman-

Independent)

The Committee discharges the functions laid down in the Companies Act, and those prescribed by the Reserve Bank of India and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also discharges the functions delegated by the Board of Directors from time to time. The ACB, which held 9 meetings during the year, has been closely overseeing and monitoring the Internal Control System and Procedures, Inspection and audit functions including follow up and compliance of audit reports. It has also interacted with the Auditors. The ACB acts as an effective tier to the Board in the matters of inspection, audit and internal control system.

ANNUAL EVALUATION OF PERFORMANCE

Pursuant to the provisions of the Companies Act, 2013, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and also in line with Board evaluation policy, Bank has put in place a criteria for annual evaluation of performance of Chairperson, Managing Director & CEO, Directors, Board Level Committees and the Board as a whole.

The performance of the members of the Board other than independent Directors and the Board as a whole has to be evaluated separately at the meeting of the Independent Directors.

The performance of the independent Directors to has been reviewed by the Board as provided for under Section 149(8) read with Schedule IV of the Companies Act, 2013. The Statement indicating the manner in which formal annual evaluation of the Directors, Committees of the Board and the Board are given in detail in the report on Corporate Governance, which forms part of this Annual Report. The Board evaluation policy is displayed on the website of the Bank at: https://www.csb.co.in/pdf/ PolicyonEvaluationoftheBoard.pdf

PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Considering the nature of activities of the Bank, with respect to the provisions of Section 134(3)(m) of the Companies Act, 2013 relating to conservation of energy and technology adoption, the Bank is constantly pursuing and making all out efforts to achieve the desired goals as contained in the Act. Ensuring compliance of the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule (8)(3) of the Companies (Accounts) Rules, 2014, the relevant disclosures to be made are as under: a) Conservation of Energy

All attempts are being made to reduce energy consumption to the maximum extent possible. As part of these measures, a few branch offices of the Bank have been using solar power, which is aimed at optimum utilisation of power in a cost effective manner. Apart from the above, the Bank is installing LED lights in phased manner across. b) Technology Absorption

The required technology absorption is being made considering the nature of activities undertaken by the Bank. c) Foreign Exchange Earnings and Outgo

Foreign Exchange earnings and outgo are part of the normal banking business of the Bank. Being an Authorised Dealer in Foreign Exchange, the Bank has been taking all possible steps to augment export credit.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS

No significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status and the Bank's operations in future.

MAINTENANCE OF COST RECORDS

Being a Banking Company, the Bank is not required to make and maintain such accounts and cost records as specified by the Central Government under sub section

(1) of Section 148 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014.

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS

During the year under report, there were no instances of frauds reported / reportable by the Auditors, to the Audit Committee, the Board of Directors or the Central Government under Section143(12) of the Companies Act, 2013.

STRICTURES AND PENALTIES

During the last 3 years, there were no penalties or strictures imposed on the Bank by the Stock Exchange(s) and/or SEBI and/or any other statutory authorities on matters relating to capital market activities.

DISCLOSURE ON MATERIALLY SIGNIFICANT TRANSACTION

The Bank has not entered into any materially significant transaction during the year, which could have a potential conflict of interest between the Bank and its directors, management and /or their relatives, etc., other than the transactions carried out in the normal course of business.

DISCLOSURE UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

Being a banking company, the disclosures required as per Rule 8(5)(xi)&(xii) of the Companies (Accounts) Rules, 2014, on the details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year and the details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof, are not applicable to the Bank.

ANNUAL RETURN

Pursuant to sub section 3(a) of Section 134 and sub section

(3) of Section 92 of the Companies Act, 2013, read with Rule 11 of the Companies (Management and Administration) Rules, 2014, as amended, the Annual Return(MGT-7) as on March 31st, 2021 will be displayed on the website of the Bank at: https://csb.co.in/investor-relations > General meetings > Annual General Meeting – 2021.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3) (c) of the Companies Act, 2013, it is hereby confirmed that:

a. In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. b. The directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for that period.

c. The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities.

d. The directors have prepared the annual accounts on a going concern basis.

e. The directors have laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively.

f. The directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENTS

The Board of Directors is grateful to the Government of India, Reserve Bank of India, Securities and Exchange Board of India, stock exchanges, Insurance Regulatory and Development Authority of India, the domestic banking community, the Registrar and Share Transfer Agents and rating agencies for their support. The Board of Directors would like to take this opportunity to express sincere thanks to its valued clients and customers for their continued patronage.

The Board also expresses its deep sense of appreciation to all the employees of the Bank for their strong work ethics, excellent performance, professionalism, teamwork, commitment and initiatives which has led to the Bank reinforcing its customer centric image and making commendable progress in today's challenging environment. The Board looks forward for their continued dedicated and sincere services to take the Bank to greater heights.

Finally, The Board of Directors wish to record their deep sense of obligation and gratitude to all the Shareholders, well wishers and all other stakeholders of the Bank for their patronage, and look forward to continuing this mutually supportive and beneficial relationship in future as well.

By Order of the Board

Sd/-

Madhavan Aravamuthan

Chairman

(DIN: 01865555)

Place: Thrissur

Date : July 05, 2021

   

CSB Bank Ltd Company Background

Aravamuthan MadhavanRajendran Veerappan Chinna
Incorporation Year1920
Registered OfficeP B No 502 CSB Bhavan,St Marys College Road
Thrissur,Kerala-680020
Telephone91-487-2333020/2338764,Managing Director
Fax91-487-2333170
Company SecretarySijo Varghese
AuditorB S R & Co LLP/Mukund M Chitale & Co
Face Value10
Market Lot1
ListingBSE,NSE,
RegistrarSKDC Consultants Ltd
Surya 35 Mayflower ,Avenue Sowripalayam ,Road ,Coimbatore - 641 028

CSB Bank Ltd Company Management

Director NameDirector DesignationYear
Rajendran Veerappan Chinna Managing Director & CEO 2021
Aravamuthan Madhavan Chairman & Independent Directo 2021
Bhama Krishnamurthy Non-Exec. & Independent Dir. 2021
Sumit Maheshwari Non-Exec & Non-Independent Dir 2021
Sijo Varghese Company Secretary 2021
Sharmila Abhay Karve Addtnl Non-Exe Dir &Indpnt Dir 2021
Sudhin Choksey Addtnl Non-Exe Dir &Indpnt Dir 2021
Madhavan Menon Non-Exec & Non-Independent Dir 2021
Sunil Srivastav Addtnl Non-Exe Dir &Indpnt Dir 2021

CSB Bank Ltd Listing Information

Listing Information
BSE_500
CNX500
BSESMALLCA
CNXSMALLCA
BSEALLCAP
BSEFINANCE
SML250
MSL400
BSEDFINRVG
NFTYMSC400
NFTYSC250

CSB Bank Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/Discount on Advances Rs.0001162.1145
Income on investments Rs.000309.8661
Others Rs.00032.0509
Interest on balance with RBI Rs.0005.855

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