Lulu Group agrees to buy 4.99% stake in CSB; bank gets new MD

Feb 13 2013, 00:07 IST
Comments 0
Lulu Group agrees to buy 4.99% stake in CSB; bank gets new MD	Lulu Group agrees to buy 4.99% stake in CSB; bank gets new MD
SummaryThe CSB chief said he has appointed Rakesh Bhatia from HSBC Group as the new Managing Director.

Dubai-based Kerala businessman Yusuffali MA, who runs the largest retail chain Lulu Centre in the UAE, has agreed to pick up 4.99 per cent stake in Catholic Syrian Bank from its largest shareholder Sura Chanrichawla and is awaiting RBI nod, said bank Chairman S Santhanakrishnan.

The CSB chief said he has appointed Rakesh Bhatia from HSBC Group as the new Managing Director, who has also picked up around 1 per cent in the Thrissur-based unlisted bank.

"The Lulu Centre promoter has agreed to pick up 4.99 per cent stake in CSB from Bangkok-based NRI businessman Chanrichawla, and is awaiting RBI approval. If the regulator allows, Yusuffali is willing to pick up another 3 per cent stake from Chanrichawla," Santhanakrishnan told PTI from Chennai today.

When contacted in Dubai, Yusuffali's office said he is touring Europe, and thus could not elicit his comment.

If the deal goes through, Chanrichawla could partially meet the March 31 RBI deadline to bring down his stake in the 93-year-old lender to under 13 per cent from the present 18 per cent.

"Another nearly 1 per cent stake of Chanrichawla has been picked up by Rakesh Bhatia, who is the new Managing Director of bank," Santhanakrishnan said.

Santhanakrishnan further said, "Bhatia, who comes from the HSBC Group, is bringing in Rs 7.5 crore to the bank apart from his vast experience. Bhatia has already put in around Rs 6 crore for around 1 per cent stake and he is committed to invest another Rs 1.5 crore."

The RBI has made its prior approval mandatory for any stake sale in CSB running into more than 1 per cent of its total shares, unlike other banks where an investor is free to buy up to 5 per cent equity.

Mumbai-based brokerage Edelwiess holds 4.99 per cent in the bank, while around 14 per cent is owned by three Hong Kong-based funds.

The Bangkok-based NRI businessman Chanrichawla has got many extensions from the RBI since 2010 to trim his stake. The current deadline to do so is March 31.

Though many times he could identify an investor in the past, the NRI failed to satisfy RBI with the prospective buyer. Still over the years, Chanrichawla has trimmed his stake to 18 per cent now from a high 34 per cent initially.

Santhanakrishnan described the Thrissur-born owner of the LuLu Group as a "good investor". Moreover, the CSB Chairman said, "Yusuffali is not interested in running the bank, which

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...