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Last Updated : Jul 22, 2020 01:25 PM IST | Source: Moneycontrol.com

CSB Bank open to buyout of other private, larger lender

CSB Bank chief executive CVR Rajendran said the Fairfax-backed lender has no capital constraints, and has built leadership capabilities to handle large business volumes

 
 
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Thrissur-based CSB Bank is exploring the option of acquiring an old private sector lender and is also open to buying a larger bank.

Speaking to The Economic Times, CSB chief executive CVR Rajendran said the Fairfax-backed company evaluating all old-generation private sector banks as possible candidates.

"With the backing of Fairfax, we do not have any capital constraint and have developed a strong appetite for growth. Over the last two years, we have built leadership capabilities to create and manage a large volume of business. We are the right juncture to create volume. Organic growth takes a longer time, so we are very keen to explore the inorganic route," Rajendran told the publication.

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Rajendran said CSB is looking at banks where there is no core promoter or are finding it difficult to raise capital.

"It is not necessary that we have to look at banks which are smaller than our size. There can be a situation where we acquire a bigger bank and follow a reverse merger," he added.

The report cited Karur Vysya Bank and Karnataka Bank as two lenders that could fit the criterion mentioned by Rajendran.

When contacted by The Economic Times, Karur Vysya Bank said it had nothing to comment on the matter, and Karnataka Bank had not yet responded to a request for comment.

Karur Vysya Bank's promoters own only 2.11 percent of the lender, while Karnataka Bank is completely public-owned.
First Published on Jul 22, 2020 01:25 pm

tags #CSB Bank

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