Mumbai: Private sector lender Catholic Syrian Bank (CSB) is set to get a new managing director and chief executive soon. The names of three former officials from public sector banks have been sent to the Reserve Bank of India for its approval, said CSB chairman S. Santanakrishnan.
The names before RBI are C.V.R. Rajendran, chief executive of the Association of Mutual Funds of India and former chairman and managing director of Andhra Bank; M.S. Raghavan, former chairman and managing director of IDBI bank; and Jeevan Das Narain, former managing director of the State Bank of Travancore. CSB is also looking for a candidate to replace Santanakrishnan after he retires early next year, said a person in the know.
CSB has been struggling with bad loans and operational losses for many years. The bank had planned to raise Rs400 crore through an initial public offering last year, but dropped the plan due to weak financial performance. According to an Economic Times report, Canada-based Fairfax Financial Holdings Ltd is looking to acquire more than 10% stake in CSB. Fairfax with investments in IIFL, ICICI Lombard, and Bangalore International Airport Ltd (BIAL) has committed close to $1 billion in India so far.
CSB reported net profit of Rs5.3 crore for the six months ended September 2016 as against a loss of Rs40.5 crore a year ago. CSB’s gross non-performing assets dropped to Rs462.7 crore for the period, from Rs503.6 crore in the year- ago period. In percentage terms, NPAs dropped to 5.7% from 5.76% of total assets. The bank’s capital adequacy stands at 10.69% as of September compared to 10.21% during the same period last year.