Fairfax starts infusion in Catholic Syrian Bank, forks out Rs 4.40 bn

This is the first deal in which a foreign investor is taking up a majority stake in a private bank after the RBI tweaked ownership norms in May 2017

Prem Watsa-promoted Fairfax India Holdings Corporation infused Rs 4.40 billion into Catholic Syrian Bank (CSB) on Friday, ending the six-month wait. The matter had been dragging over pending approvals from the finance ministry. 

The Canadian billionaire’s investment arm has committed to infusing Rs 12-billion capital in the bank over a period of time and Friday’s investment is part of that.

The Kerala-based private sector bank has completed the allotment of equity shares and convertible warrants to Fairfax India through its wholly-owned subsidiary FIH Mauritius Investments Ltd (FIH-M).

This is the first deal in which a foreign investor is taking up a majority stake