Max Life Insurance Company Limited (Max Life), has picked a 2.99 per cent equity stake in Jalandhar-headquartered Capital Small Finance Bank (CSFB) for a consideration of ₹49.50 crore.
Towards this investment, as many as 10,57,700 equity shares of CSFB of ₹10 each at a premium of ₹458 per equity share has been allotted to Max Life.
Sarvjit Singh Samra, MD & CEO, Capital Small Finance Bank said, “We are thrilled to announce the equity investment from Max Life Insurance Company Limited. This investment marks a significant milestone for Capital Small Finance Bank and reinforces our commitment to delivering exceptional value to our customers. It is a testament to the strength of our bank and the trust that Max Life Insurance has placed in us”.
As of May 31, 2023, this strategic investment has increased the Capital Adequacy Ratio (CAR) of CSFB by more than 1 per cent, raising it to 20.77 per cent. This enhancement reflects the bank’s commitment to maintaining regulatory compliance and strengthening its financial position, according to CSFB.
CSFB started operations as India’s 1st Small Finance Bank on April 24, 2016 after conversion from Capital Local Area Bank. Prior to conversion to a Small Finance Bank, Capital Local Area Bank was operating as India’s largest local area bank since January 14, 2000.