SBI Funds Management gets RBI nod to buy up to 10 pc in CSB Bank

Bank share gains 4.73 pc to close at Rs193 (NSE)

THRISSUR: The Reserve Bank of India (RBI), on July 22 has given approval to SBI Funds Management Pvt Ltd to acquire shares up to 10 per cent of the paid-up capital of CSB Bank through various schemes of the SBI Mutual Fund.

As per the terms of RBI letter, this approval shall stand valid for one year period from the date of the letter i.e. till July 21, 2021.  SBI Funds Management Pvt Ltd through various schemes of SBI Mutual Fund currently holds 4.734 per cent in the paid-up capital of the bank.

CSB Bank shares gained 4.73 per cent on Friday on NSE to close at Rs193, though still long way to go to its 52-week high of Rs314.20. CSB ESOS, at 4.799 per cent, is the only entity that has larger shareholding than SBI Funds, leaving aside the Fairfax Holdings that runs the show with close to 50 per cent equity ownership in the bank.

Yusaffali still remains the largest individual shareholder with 2.065 per cent holding as of March end, 2020. But CSB ESOS has decided to increased its holding in the bank substantially by increasing the size of CSB ESOS 2019 from the present 50 lakh options to 1.67 crore options by resorting to buying shares from new issue by the bank, as well as purchasing from the secondary market.




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