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Fairfax Looks to BuyOver 10% in CSB

Canadian billionaire Prem Watsa’s Fairfax Financial Holdings is looking to acquire more than 10% stake in Kerala­based Catholic Syrian Bank (CSB), people familiar with the development told ET. Watsa’s latest Indian bet is seen as part of the Canadian billionaire’s plan to establish a conglomerate in India with interests in fields ranging from banking, insurance, broking, infrastructure and chemicals. A proposal to this regard has also been submitted to the Reserve Bank of India, sources said. “The bank needs constant capital… We are talking to many investors including Fairfax,” said S Santhanakrishnan chairman, Catholic Syrian Bank. A mail sent to Fairfax Financial did not elicit any response until press time on Sunday. The banking regulator in May issued new guidelines on ownership in private sector banks by bundling shareholding patterns into two broad categories of individuals (natural persons) and legal entities/institutions. Acquisition of shareholding in a private sector bank by foreign enti­ ties will continue to be subject to the extant FDI (foreign direct investment) policy, and the aggregate foreign ownership through FDI, FII/NRIs cannot exceed 74% of paid­up capital. The RBI had also retained the provision of seeking its prior mandate if someone wants to increase shareholding/voting rights to 5% or more. The new norms, which envisage diversified shareholding in private sector banks, are aimed at helping them meet the additional capital under the basel­III regulations and to rationalise the ownership limits, the RBI had said. Catholic Syrian Bank, which had applied to the market regulator Sebi last year for an IPO (initial public offering), shelved the plan due to choppy market conditions. At the end of March 2016, the bank suffered losses of over . 100 crore with gross non­performing asset ratio of over 5.62%. At the end of 2015, the bank had advances of . 9,472 crore and a deposit base of . 14,475 crore. The bank has a network of over 430 branches and more than 240 ATMs across India. With over 1.3 million customers, it largely focuses on expatriates working in the Gulf who S SANTHANAKRISHNAN Chairman, Catholic Syrian Bank Catholic Syrian Bank needs constant capital… We are talking to many investors including Fairfax

Sandip Ginodia , Director 
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