Centurion Global Investors Ready To Pour Cash

Foreign stakeholders in Centurion Bank have shown their willingness to pump in additional money into the bank.

Collectively, the foreign stakeholders have around 36 per cent stake in the bank. Keppel Bank is the largest stake holder among the foreign players (around 17.5 per cent) that holds stake through Kephinance Investment (Mauritius) Pte Ltd followed by Asian Development Bank (10.22 per cent) and the International Finance Corporation (8.36 per cent).

Dev Ahuja, the promoter of the bank, holds around 8.5 per cent stake in the bank. Ahuja had given up his entire rights on another 26.2 per cent stake in the bank which was held through TCFC Finance Ltd (TFL). TFL has authorised the bank to sell the stake to a strategic investor.

 

"The foreign players are ready to pump in more money if they find the new player -- who ever picks up a stake in the bank -- is credible. They will back the bank," said a Centurion Bank insider. The bank is still in search of a suitor.

The bank had earlier deferred the announcement of its financial results for 2001-02 to September 2002. Bank officials are certain that the deal will be finalised by the time the results will be announced.

Sources added that Merill Lynch is currently doing a due diligence on the bank. V Janakiraman, chairman and managing director, whose six-month term came to an end in June 30, has been given a six-month extension till December.

The bank is making a major thrust on the retail loans. It has disbursed Rs 1,000 crore in two-wheeler financing. The bank finances two-wheelers at more than 150 locations and 1000 dealerships.

The ratio of retail and corporate loans which was earlier at 25:75 is fast changing. The retail loans are more than 50 per cent of the portfolio and the bank wants to change the mix to 75:25, said Centurion Bank officials.