Three foreign private equity funds, AIF Capital, Gartmore and Siguler Guff, have together picked up a 14% stake in Thrissur-based Catholic Syrian Bank for Rs 33.3 crore.The private equity funds made an investment of Rs 190 per share including a premium of Rs 180 per share.
With this investment, the net worth of the bank will go up considerably, according to a release issued by the bank.
The bank, with a capital adequacy of 9.58% at the end of FY07, has been struggling to raise capital.The bank’s net worth at the end of FY07 was around Rs 229.39 crore against the minimum regulatory requirement of Rs 300 crore.
The bank earlier planned to raise fresh capital through a preferential allotment of about 15% stake to Asian private equity firm, AIF Capital Development.However, the Reserve Bank of India’s (RBI) guidelines restrict any single private equity firm’s holding in a private sector bank to 5%.
Read more in The Business Standard article.
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