Catholic Syrian Bank likely to go public next fiscal

The IPO is expected to collect at least Rs 300 cr and would be opened during the April-June period

Kerala-based private sector lender Catholic Syrian Bank (CSB) is likely to enter the capital market during the first quarter of the next financial year. The IPO is expected to collect at least Rs 300 crore and would be opened during the April-June period.

The Thrissur-based bank plans to utilise the proceeds from the IPO for strengthening its capital base and for development initiatives. CSB has a capital base of Rs 737 crore and its capital adequacy ratio stood at 11.25 per cent as on March 31, 2014. It is the only Kerala-based old generation private sector bank yet to tap the capital market.

In 2013-14, the bank's net profit stood at Rs 26.88 crore on a total business of Rs 22,381.22 crore. Net NPA was 2.04 per cent. The bank has 431 branches and 233 ATMs.

Meanwhile, CSB managing director Rakesh Bhatia has submitted his resignation citing personal reasons. The bank will soon submit a panel of three to the Reserve Bank of India for appointing a new managing director. According to sources, the likely candidate is Anand Krishnamurthy, who is currently heading wholesale banking and treasury operations of the bank. He had served as head of balance sheet management and as co-head of global markets business for Middle East, India and North Africa at HSBC.

NRI business man MA Yusuf Ali, and financial services company Edelweiss hold 4.99 per cent in CSB. L&T and the Muthoot Pappachan Group also hold stakes in the bank, which was founded in 1920.