Fairfax-promoted private sector lender CSB Bank, formerly known as Catholic Syrian Bank, today announced that its Rs 410-crore initial public offering (IPO) will open for subscription from November 22 to November 26.
CNBC-TV18 caught up with the bank's MD and CEO Rajendran Chinna Veerappan and discussed its plan for the IPO.
When asked about turnaround of the bank after capital infusion, the CEO said: “For quite some time, this was a capital-starved bank. We were not able to deploy it in the loan assets mainly because there was no capital for us. So we were growing only the gold loan portfolio and we could not enter the SME which is our main focus area. Today with the increased capital and 22 percent capital adequacy, I am confident we will be in a position to expand our advances portfolio much faster which is reflecting in the first half year itself. Going forward, advances growth will be much better. With a 22 percent capital adequacy, we can grow the balance sheet manifold with the same capital, without raising additional capital.”
Talking about raising capital through offer for sale (OFS), he said, “We are not going to raise capital, it is only an offer for sale from the existing shareholders. Additional capital coming to the bank is hardly Rs 25 crore in this issue. We will expand our network also. There is a restriction on expanding network until we list the shares. Once the listing happens, hopefully the RBI will lift that, we will expand into the new geographies particularly south and west. New branches will open mainly focusing on gold loan and MSME and SME loans.”