CSB Bank, backed by billionaire Prem Watsa, is exercising caution in its gold loan sector, which comprises 53% of its total portfolio. The bank's managing director, Pralay Mondal, indicated that geopolitical conflicts have led to a significant price correction in gold, prompting a more conservative approach to lending. The bank previously experienced a 53% growth in gold loans in FY26 but expects this to slow down. CSB is now focusing on expanding its wholesale and small business loans instead. Additionally, a policy change from the Reserve Bank of India (RBI) regarding re-pledger gold loans has altered the bank's loan portfolio, resulting in a technical correction that will impact future growth rates. CSB Bank aims to maintain a loan-to-value (LTV) ratio between 60% and 65%, ensuring stability in its portfolio quality even if gold prices decline further.