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Catholic Syrian Bank to increase equity to allow Fairfax on board

Fairfax investment values bank at Rs 23 billion

Fairfax, ICICI Lombard, Warburg Pincus
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File photo of a man walking past a Fairfax Holdings sign directing shareholders to the meeting, at the annual general meeting for shareholders in Toronto in April 9, 2014. (Photo: Reuters)

T E Narasimhan Chennai
Kerala-based Catholic Syrian Bank (CSB) has decided to increase its equity base by creating 80 million shares to allow Fairfax to invest up to Rs 12 billion in the bank for a 51% stake.

According to experts, the valuation of over Rs 23 billion for the entire 100% stake of CSB is about 10% of its total business size.

The money will be infused by FIH Mauritius Investment, a subsidiary of Fairfax India Holdings.

The deal, if it fructifies, will mark the first takeover of an Indian bank by a foreign non-banking financial entity after the Reserve Bank of India

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