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Lulu Group MD Yusaff Ali acquires 4.99% stake in ESAF Small Finance Bank

With this investment, the Indian billionaire now owns 5% in a Kerala-based Bank

T E Narasimhan  |  Chennai 

ESAF Small Finance Bank
ESAF Small Finance Bank

NRI businessman, billionaire and chairman of Lulu Group MA has acquired a 4.99 per cent stake in ESAF Small Bank, headquartered in Thrissur.

He invested around Rs 860 million to acquire the stake. K Paul Thomas, MD and CEO, Bank confirmed the development.

With this investment, he now owns 5 per cent in a Kerala-based bank.

Currently, he owns around 5 per cent shares in Federal Bank, South Indian Bank, Catholic Syrian Bank and Dhanlaxmi Bank.

Ali, who hails from Kerala, is the Chairman and Managing Director of that owns the Lulu Hypermarket chain worldwide and LuLu International Shopping Mall. With an annual turnover of $7.4 billion globally, employs the largest number of Indians outside India, according to Wikipedia.

Bank has announced the completion of private placement of the Company's common stock worth Rs 4.64 billion last month but did not disclose Ali's name. Rather, it stated that PNB MetLife India Insurance Co Ltd and ESAF Multi-State Co-operative have taken a stake of 4.99% each in the Bank. Bajaj Allianz Life Insurance Co Ltd and ICICI Lombard General Insurance Co Ltd have taken a stake of 4.08% and 1.45% respectively.

With the infusion of the additional capital, net worth of the bank has increased to Rs 8.07 billion and the CRAR to 27.9 per cent.

ESAF has accumulated 3 billion worth deposits in the first half of the Financial Year and has added 2.5 million customers. The bank currently has 422 banking outlets, which include 297 ultra-small branches and 125 new retail banking outlets spread across 11 states in India. With 2 million borrowers, the bank has accumulated 4.4 billion in loans and advances.

First Published: Thu, November 15 2018. 07:03 IST