Sabre conducts Centurion Bank’s due diligence for equity infusion

Our Banking Bureau
09 December 2002

Mumbai: Sabre Capital Worldwide Inc, a private equity fund promoted by former Standard Chartered chief Rana Talwar, is conducting an exclusive due diligence of Centurion Bank for a possible capital infusion, a Centurion Bank statement issued here said.

Centurion Bank chairman and managing director R Janakiraman said the fund began due diligence on 7 December 2002. Sabre is expected to complete the exercise by the end of the month and make its offer by the second week of January 2003.

Sabre Capital is a private equity fund established by a team of bankers to invest in and help manage financial services businesses in emerging markets, the statement added.

Sabre is the newest of a string of investors that has done due diligence of the capital-starved new generation private bank. Previously several banks (including HDFC Bank and Citibank) and private funds had done due diligence, but pulled out.

Currently the foreign partners of the bank (Asian Development Bank, Keppel and International Finance Corporation [IFC]) together hold about 36-per cent equity. According to sources, Sabre may buy a 5-per cent stake from IFC, which is willing to sell a part of its holding.

Centurion Bank’s market valuation is currently only a little below Rs 100 crore. Janakiraman had recently said the bank needs tier-I capital in the region of about Rs 120-150 crore.