HomeFinance NewsFairfax starts infusion in Catholic Syrian Bank, says report

Fairfax starts infusion in Catholic Syrian Bank, says report

The deal will be the first instance where a foreign investor is taking up a majority stake in a private bank after the RBI tweaked ownership norms in May 2017.

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By CNBC-TV18 October 20, 2018, 12:50:12 PM IST (Published)

Fairfax starts infusion in Catholic Syrian Bank, says report
Fairfax India Holdings Corporation, on Friday infused Rs 440 crore into Catholic Syrian Bank (CSB), reported Business Standard.

According to the report, the move by Prem Watsa-promoted investment firm had been dragging over for nearly six months pending approvals from the finance ministry.

As per the report, the firm has committed to infuse Rs 1200 crore capital in the bank as part of the infusion. The deal, the report said, will be the first instance where a foreign investor is taking up a majority stake in a private bank after the RBI tweaked ownership norms in May 2017.

According to the report, the Kerala based bank has completed the allotment of equity shares and convertible warrants to Fairfax India. This, the report added, was done through Fairfax’s wholly-owned subsidiary FIH Mauritius Investments Ltd.

Confirming the development, CVR Rajendran, chief executive officer of the bank stated in the report that ‘Rs 440crore growth capital would be deployed immediately as demand was high in the market,’ the report said.
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