MUMBAI (Reuters) – Fairfax India Holdings Corp said on Thursday its wholly-owned subsidiary, FIH Mauritius Investments, sold a 9.7% stake in Indian private lender CSB Bank to comply with regulatory norms.
The proceeds of the sale amounted to 5.9 billion rupees ($70.7 million) in gross terms, Fairfax India said in a release.
After the sale, Fairfax India’s stake in Kerala-based CSB Bank will reduce to 40% from 49.72% at the end of March.
Toronto-based Fairfax India Holdings is backed by Canadian billionaire Prem Watsa and invests in public as well as private equity securities and debt instruments in India.
In November, FIH Mauritius Investments received approval from the Reserve Bank of India to bring down its shareholding in CSB Bank to 26% within 15 years, instead of 15% as advised by the central bank earlier.
CSB Bank’s shares were up 4.1% in early trade on Thursday.
($1 = 83.5050 Indian rupees)
(Reporting by Siddhi Nayak; Editing by Eileen Soreng)
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