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Catholic Syrian Bank awaits RBI nod for Fairfax investment

The proposed Rs 1,000 crore investment will allow CSB to increase its assets 10 times

T E Narasimhan  |  Thrissur 

Catholic Syrian Bank awaits RBI nod for Fairfax investment

Kerala-based (CSB) expects to get the proposed fund infusion by Financial Holdings by March next year. 

had approached the Reserve Bank of India (RBI) evincing interest in investing Rs 1,000 crore in an Indian bank. RBI, in turn, forwarded the proposal to CSB, which accepted it. 

Now, has to give its in-principle approval. “We hope to get the in-principle approval from the banking regulator before December. And, 90 days is a good time to finish things from then,” said S Santhanakrishnan, chairman, CSB.

Santhanakrishnan is due to retire soon but will continue as director. T S Anantharaman is set to take over as the new chairman of CSB.

On the proposed investment, Santhanakrishnan said: “It is good to raise money from one investor, instead of going around looking for capital.”

On diluting 51 per cent stake, he said: “I am not worried about how much it (Fairfax) is going to take, since it will have voting rights capped at 15 per cent.”

On valuation, he said the process of valuation would start after gives its in-principle approval. “My back-of-the-envelope calculation is that the bank is valued at Rs 1,500-2,000 crore,” he added.

Commenting on reports that NRI businessman Yusuff Ali, managing director of Lulu group and the largest individual shareholder in the bank, was opposed to the move to shift the bank’s headquarters from Thrissur, he said there was no such proposal.

Ali holds around five per cent in CSB.

The proposed Rs 1,000 crore will allow to increase its assets 10 times. The bank’s focus will be on small and medium enterprises, gold and retail, while it may not be aggressive on corporate lending, said Santhanakrishnan. 

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Catholic Syrian Bank awaits RBI nod for Fairfax investment

The proposed Rs 1,000 crore investment will allow CSB to increase its assets 10 times

The proposed Rs 1,000 crore investment will allow CSB to increase its assets 10 times
Kerala-based (CSB) expects to get the proposed fund infusion by Financial Holdings by March next year. 

had approached the Reserve Bank of India (RBI) evincing interest in investing Rs 1,000 crore in an Indian bank. RBI, in turn, forwarded the proposal to CSB, which accepted it. 

Now, has to give its in-principle approval. “We hope to get the in-principle approval from the banking regulator before December. And, 90 days is a good time to finish things from then,” said S Santhanakrishnan, chairman, CSB.

Santhanakrishnan is due to retire soon but will continue as director. T S Anantharaman is set to take over as the new chairman of CSB.

On the proposed investment, Santhanakrishnan said: “It is good to raise money from one investor, instead of going around looking for capital.”

On diluting 51 per cent stake, he said: “I am not worried about how much it (Fairfax) is going to take, since it will have voting rights capped at 15 per cent.”

On valuation, he said the process of valuation would start after gives its in-principle approval. “My back-of-the-envelope calculation is that the bank is valued at Rs 1,500-2,000 crore,” he added.

Commenting on reports that NRI businessman Yusuff Ali, managing director of Lulu group and the largest individual shareholder in the bank, was opposed to the move to shift the bank’s headquarters from Thrissur, he said there was no such proposal.

Ali holds around five per cent in CSB.

The proposed Rs 1,000 crore will allow to increase its assets 10 times. The bank’s focus will be on small and medium enterprises, gold and retail, while it may not be aggressive on corporate lending, said Santhanakrishnan. 
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Business Standard
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Catholic Syrian Bank awaits RBI nod for Fairfax investment

The proposed Rs 1,000 crore investment will allow CSB to increase its assets 10 times

Kerala-based (CSB) expects to get the proposed fund infusion by Financial Holdings by March next year. 

had approached the Reserve Bank of India (RBI) evincing interest in investing Rs 1,000 crore in an Indian bank. RBI, in turn, forwarded the proposal to CSB, which accepted it. 

Now, has to give its in-principle approval. “We hope to get the in-principle approval from the banking regulator before December. And, 90 days is a good time to finish things from then,” said S Santhanakrishnan, chairman, CSB.

Santhanakrishnan is due to retire soon but will continue as director. T S Anantharaman is set to take over as the new chairman of CSB.

On the proposed investment, Santhanakrishnan said: “It is good to raise money from one investor, instead of going around looking for capital.”

On diluting 51 per cent stake, he said: “I am not worried about how much it (Fairfax) is going to take, since it will have voting rights capped at 15 per cent.”

On valuation, he said the process of valuation would start after gives its in-principle approval. “My back-of-the-envelope calculation is that the bank is valued at Rs 1,500-2,000 crore,” he added.

Commenting on reports that NRI businessman Yusuff Ali, managing director of Lulu group and the largest individual shareholder in the bank, was opposed to the move to shift the bank’s headquarters from Thrissur, he said there was no such proposal.

Ali holds around five per cent in CSB.

The proposed Rs 1,000 crore will allow to increase its assets 10 times. The bank’s focus will be on small and medium enterprises, gold and retail, while it may not be aggressive on corporate lending, said Santhanakrishnan. 

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Business Standard
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