Is CSB Bank overvalued or undervalued?

As of 22 August 2025, CSB Bank's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The bank is currently fairly valued, with a PE ratio of 11.73, a Price to Book Value of 1.56, and a PEG ratio of 1.26. In comparison to its peers, CSB Bank's valuation stands out against HDFC Bank, which has a PE ratio of 21.75, and ICICI Bank, with a PE ratio of 20.95, both categorized as expensive.
The bank's return on equity (ROE) is 13.32%, and its net NPA to book value ratio is 4.78%, which reflects a relatively stable financial condition. Notably, CSB Bank has outperformed the Sensex with a year-to-date return of 29.1% compared to the Sensex's 4.05%, reinforcing its attractiveness in the current market landscape. Overall, CSB Bank presents a compelling investment opportunity as it is fairly valued relative to its peers and demonstrates strong performance metrics.