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 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%.
AIF Capital, headquartered in Hongkong, is one of the largest Asia-based private equity firms with over $1 billion investments in power, infrastructure and banking on a pan-Asia basis.
Gartmore is a London-based independent asset manager with over $50 billion under management and Siguler Guff is headquartered in New York is a multi-strategy private equity investment firm with over $4.50 billion under management.
(Source: Business Standard)
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