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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The Kerala-based bank has been chasing costly and risky bulk term deposits amid tanking profitability.
Last week, Indian-born Canadian billionaire Prem Watsa lost Rs 782 crore in just two hours. Along with other shareholders of Watsa-backed CSB Bank, as the stock of the Thrissur-based private sector lender fell by 18% during those hours.
The drop was reportedly triggered by the bank’s results for the December quarter. In fact, the stock has tanked by over 24% since the results were announced, shedding a quarter of its market value in just four days. At the receiving end are the numerous investors of CSB Bank—1.13 million retail shareholders, 13 mutual funds and 16 alternative investment funds, among others. …
The acquisition of IDBI Bank puts his Fairfax smack dab in the middle of the RBI’s rules on bank ownership. It must now decide whether to sell CSB Bank or merge the two lenders, neither of which will be easy.
Lenders stand to gain a lot more than borrowers in the current challenging market environment
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
