CSB in talks with Mauritius investors

Thrissur-based Catholic Syrian Bank (CSB) is in talks with Mauritius-based investors for privately placing a 15 per cent stake in the bank to raise about Rs 35 crore.

If the Reserve Bank of India (RBI) permits, CSB plans to place the entire 15 per cent stake with a single investor or otherwise privately place 10 per cent with one investor and 5 per cent with another investor, banking sources said.

The bank expects RBI permission for the proposed private placement soon and complete the transaction by the beginning of next month.

Sources said the bank would raise another Rs 35 crore through a rights issue immediately after the private placement. Shareholders of the bank had authorised the board to raise a total of Rs 100 crore through fresh issue shares to raise the bank's net worth to Rs 300 crore.

The RBI requires all private sector banks to have a minimum net worth of Rs 300 crore to begin with and ultimately have a minimum paid-up equity capital of Rs 300 crore.