Church opposes proposed transfer of CSB shares

Thrissur, June 28 (UNI) The controversal decision of the private sector Catholic Syrian Bank (CSB) management to transfer its shares has been opposed by the Church.

The CSB 'protection committee', presided over by vicar-general of the archdiocese Fr Raphael Thatill, met here this morning and recorded its strong protest to the proposed selling of the bank's shares under private placement at a considerably lower price.

The committee decided to take up the matter with RBI and Central and Kerala governments to convince them there were other persons and institutions to invest sufficient funds to retain the bank in Thrissur and not transfer control to anybody else, protection committee coordinator Fr Lawrence Olakkengal said in a statement.

The bank management reportedly decided to allot its shares by remitting only 50 paise per share of Rs 10 face value. It also decided to sell shares on the basis of preferential allotment, which would go against the rights of ordinary equity shareholders, the committee felt.

It unanimously decided to defeat the 'ill-advised move' of the CSB Management to replace Article 4 of the Bank's Memorandum and Articles of Association as it felt the amendment's main aim was to sell the bank for a song to persons close to the board of directors.

CSB Shareholders Association general secretary Johny Chandy also attended the meeting.

UNI XR ARC MSJ RS1832