CSB IPO in next fiscal

Plans to utilize the proceeds from the IPO to strengthen capital base and for developmental purposes

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. Bank's IPO, which will collect at least Rs 300 crore, will be opened during April-June period.

The Thrissur based bank plans to utilize the proceeds from the IPO for strengthening the capital base and for development initiatives. The bank has a capital base of Rs 737 crore and its capital adequacy ratio is 11.25% as on 31st March 2014. It is the only Kerala based old generation private sector bank yet to tap the capital market. On a total business of Rs 22,381.22 crore CSB recorded a net profit of Rs 26.88 crore during 2013-14. Net NPA is 2.04%. It has a branch strength of 431 and having 233 ATMs spreading across the country.

Meanwhile, bank's managing director Rakesh Bhatia has submitted his resignation because of 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 presently heading the 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.

Prominent NRI business man M.A Yusuf Ali, and Edelweiss, a leading financial services company are having a holding of 4.99% in CSB. L&T and Muthoot Pappachan Group are also holding stakes in the bank, which was founded in 1920.