Catholic Syrian Bank Sells 14% To Private Equity Funds For Rs 33 Crore
Thrissur-headquartered Catholic Syrian Bank has sold 14 per cent stake to three foreign private equity funds, AIF Capital, Gartmore and Siguler Guff, for Rs 33 crore ($8 million), reports Business Standard, quoting a bank press release. The investment has been made at Rs 190 per share (of face value Rs 10).
The private equity infusion is to increase the networth of the bank beyond the Reserve Bank of India’s minimum requirement of Rs 300 crore. The bank, with a capital adequacy of 9.58 per cent at the end of FY07, had only Rs 229.39 crore in networth till FY2006-07.
CSB was earlier planning to sell 15 per cent stake to a single investor, the Hong Kong-based AIF Capital Development. But this was not approved by RBI, which stipulates the maximum shareholding by a private equity investor in bank to 5 per cent. Now AIF was sold 5 per cent, while the other two investors (London-based Gartmore and New York-based Siguler Guff) got 4.5 per cent each.
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