Catholic Syrian Bank To Seek RBI Nod To Sell 15% Stake To AIF Capital Management
Kerala’s Catholic Syrian Bank is selling 15 per cent stake to AIF Capital Development, a Mauritius-registered private equity firm. The bank will seek Reserve Bank of India’s permission to sell the stake. The bank has a loan portfolio of Rs 2,694 crore as on March 31, 2006.
CSB, a prominent private bank in Kerala with significant NRI deposit base, is hoping to get the RBI nod. The RBI rules stipulate a 10 per cent maximum limit to a single entity in private banks. However, there have been exceptions in the case of Yes Bank and Centurion Bank of Punjab. The Netherlands-based Rabobank owns a 19.29 per cent stake in Yes Bank, while BankMuscat owns a 17.76 per cent stake in Centurion.
AIF Capital Development has already obtained clearance from the Foreign Investment Promotion Board (FIPB). Interestingly, the government’s guidelines allow up to 74 per cent foreign ownership in banks. But RBI rules limiting the individual shareholder limit is a constraint.
