The Economic Times reports that the Indian government has rejected ChrysCapital’s plans to take a stake in Development Credit Bank.

Chrys Capital’s plan of acquiring a 12.89 per cent stake in Development Credit Bank has been spiked by the government. This follows objections raised by the Reserve Bank Of India about fresh infusion of capital into DCB.

The report further says that the RBI took this decision becasue DCB hadn’t complied with some norms when it did a preferential allotment to Aga Khan Fund for Economic Development (AKFED) earlier this year.

While DCB had gone ahead with the preferential allotment, it had failed to meet the conditions stipulated by the RBI. The central bank has therefore ruled that, till these conditions are met, it will not approve any proposal for fresh infusion of capital into DCB.

Chrys Capital had sought permission for acquiring the stake in DCB at a premium of Rs 45 per share for an aggregate consideration not exceeding Rs 36 crore. It had also furnished a no-objection certificate from Yes Bank, in which it holds a stake.

Posted on 11/28/05, 5:36 PM
in: Main Page, Private Equity
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