| The Kerala-based Catholic Syrian Bank is in the process of seeking the Reserve Bank of India’s (RBI) permission to sell a 15 per cent stake in the bank to AIF Capital Development, a Mauritius-registered private equity firm. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| With a loan portfolio of Rs 2,694 crore as on March 31, 2006, the bank hopes to get clearance from the RBI to have a single shareholder owning more than 10 per cent stake as has been allowed in Yes Bank and Centurion Bank of Punjab. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The RBI’s policy on shareholding in private sector banks allows any single entity to own a maximum of 10 per cent stake in a bank. The Netherlands-based Rabobank owns a 19.29 per cent stake in Yes Bank, while Bank Muscat owns a 17.76 per cent stake in Centurion. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| The price at which the preferential allotment will be made is not known. The equity capital is likely to increase by about Rs 1.9 crore. The bank’s equity capital as on March 31, 2006, was Rs 10.70 crore. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The bank plans to make a preferential allotment to AIF Capital to fulfil the central bank’s requirement that every private sector bank must have a minimum net worth (equity capital plus reserves) of Rs 300 crore. The bank had a net worth of Rs 215.58 crore as on March 31, 2006. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The Kerala-based bank has a network of 334 branches and extension counters, which include five NRI branches, five SSI branches, five industrial finance branches and four service branches. Source : Business Standard |
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