Date:17/08/2007 URL: http://www.thehindubusinessline.com/2007/08/17/stories/2007081752050600.htm

Back 1:1 rights from CSB

Our Bureau

Kochi Aug. 16 Catholic Syrian Bank has announced the issue of 1.02 crore equity shares of Rs 10 each on a 1:1 rights basis to existing shareholders.

The issue would command a premium of Rs 110 per share and is expected to mobilise Rs 122.71 crore.

Meanwhile, one of the shareholders, Mr V.O. John, obtained a stay order on the proposed rights issue from the Thrissur Principal Munsiff Court on Tuesday stating that it allegedly violated the provisions of the Companies Act.

The bank has moved the High Court of Kerala, which admitted the petition today. CSB is confident that the petition would come up for hearing and the stay would be vacated by Friday. The rights issue is scheduled to open on August 16 and close on 29.

The net profit of the bank has grown by 135 per cent to Rs 13.15 crore (Rs 5.61 crore) during the first quarter of the current fiscal.