labels: rbi, banks & institutions
Ahuja, Srinivasan quit Centurion board news
Our Banking Bureau
18 April 2002

Mumbai: Centurion Bank has informed the Bombay Stock Exchange (BSE) that Dev Ahuja, a promoter who holds 26 per cent equity in the bank, and V S Srinivasan have stepped down from its board of directors. Srinivasan was the managing director of the bank till recently.

A notice to the BSE said Satish Kaura, another director, has also resigned from the board. In view of Kauras resignation, Kanta Ahuja, alternate director to him, also ceased to hold the directors office, the notice said.

The bank, in which IFC Washington, Asian Development Bank and Keppel Tatlee Bank of Singapore hold stakes, has been struggling to raise resources to increase its capital adequacy ratio. The bank had proposed a Rs 126-crore rights issue last year. It was eventually cancelled as it failed to enthuse shareholders.

Centurion Bank has plans to offload the pledged shares to a strategic investor. The bank held discussions with many strategic investors to place the shares. The strategic investor is expected to also contribute additional capital, apart from acquiring the block of shares. The search for a partner is being coordinated with IFC Washington.

Srinivasan had said in October 2001 that the bank will be recapitalised in excess of Rs 120 crore and the commitment on capitalisation should happen by 31 March 2002. This, however, has not happened yet.


 


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Ahuja, Srinivasan quit Centurion board