Nomura Singapore takes stake in Karnataka Bank
Pays US$2.1 billion for 1.17 million shares.
The buy-in by Nomura of the private lender Karnataka Bank based in Mangalore gives the Japanese firm 0.62% stake in the bank.
Karnataka Bank has a national presence and a network of 559 branches spread across 20 states and 2 Union Territories.
A recent announcement by the Reserve Bank of India that foreign lenders could be allowed to take over local banks has sent the share prices of mid-sized banks soaring.
Indian banks, however, continue to face massive challenges related to unstable macro-economic indicators, high interest rates and slowing growth.
The major shareholders of Karnataka Bank are LIC (5.54%), Kotak Mahindra Investments (3.22%), Religare Finvest (2.38%), JM Financial (1.72%) and Credit Suisse (1.66%).
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