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

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

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