Muthoot Pappachan Group picks 1% in CSB, to take it to 5 pc

MUMBAI/THRISSUR: Diversified business group Muthoot Pappachan Group has picked up 1 per cent stake in the private sector Catholic Syrian Bank whose largest shareholder Bangkok-based Sura Chansrichawla was asked by RBI to lower his stake to 10 per cent.

"We have picked up one per cent stake in Catholic Syrian Bank (CSB) through open market transactions and are keen to increase our holding to five per cent over the next three to six months as per the regulations," Muthoot Pappachan Group Chairman and Managing Director Thomas John Muthoot told PTI from Thiruvananthapuram.

He, however, did not disclose the deal size. To a specific query on whether the stake was bought from the bank's largest stakeholder, NRI entrepreneur Sura Chansrichawla, Muthoot said, "We picked up the shares from the open market."

"The Muthoot Pappachan Group has agreed to pick up 0.99 per cent stake in our bank and they are in talks to increase the stake to five per cent," one of the CSB directors K Ipe Peter told PTI in Thrissur, where the bank is headquartered.

On valuation, Muthoot said, "We didn't pay any premium as there are plenty of shares available in the market." As to what does it signify for the largest financial services group in Kerala, Muthoot said, "this is a good investment opportunity for us and are keen to invest more in this."

The share purchase comes close on the heels of Edelweiss Capital late last week raising its stake in CSB to 4.9 per cent for an undisclosed amount from the earlier one per cent.