Bank to get Rs 319 cr fund infusion in two phases
A group of investors led by Sabre Capital Worldwide is set to acquire a 66 per cent stake in the beleaguered Centurion Bank. The bank will get a fresh infusion of Rs 319 crore in two phases.
The investors include BankMuscat, which will pick up a 26 per cent stake. Sabre Capital, promoted by former Standard Chartered Bank CEO Rana Talwar, will have a 2 per cent stake in the bank.
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In the first phase, Rs 219 crore will be infused into the bank, of which Rs 156 crore will be by a consortium of banks, private equity partners, financial institutions and high net worth individuals led by Sabre.
The recapitalisation also includes a public-cum-rights issue of Rs 65 crore. The proposal will be put through a court scheme under Section 391-394 of the Companies Act.
Talwar, chairman of Sabre Capital, will take over as chairman of the bank. Till then, V Janakiraman, chairman and managing director of the bank, will continue in his position.