Kerala-based Catholic Syrian Bank is considering three options to raise funds in the wake of uncertainties over the bank's proposed sale of 51 per cent stake to Fairfax Financial Holdings due to difference in valuation.

The capital-raising plans include an initial public offering (IPO), preferential allotment to multiple investors by selling 5 per cent stake each or a big-ticket sale, such as in the case of Fairfax, the bank’s Chairman TS Anantharaman said after the board meeting. Private placements have good potential as the bank could easily raise ₹300-400 crore to meet its capital requirements. Moreover, RBI permission is not mandatory for stake sale up to 5 per cent. Likewise, there are even good offers from firms to acquire 51 per cent shares. The bank will study all the three options and choose one, which would be in the best interests of the institution. A decision in this regard will be taken in the near future, he added.

CSB, one of the oldest private sector banks in the country, is looking to raise ₹300-500 crore in the short term for expansion. Asked about the financial performance in the first quarter, the Chairman said: “We are on track as the bank has initiated a five-year plan for aggressive growth. We are going exactly according to the plan.”

The bank had earlier proposed a 51 per cent stake-sale to Fairfax at a price of ₹160 per share by valuing the bank at around ₹1,300 crore. However, the deal got derailed, as the offer price was seen to be very low.