Did you guys catch that? At the end of the article, it lists the intended growth rate to be a double in three years. Also they are planning an ipo for either 2019 or 2020. Which means Fairfax India would not be bound to reporting BV as an ultraconservative DCF model any more. More value creation for shareholders:
CSB's balance sheet had stagnated at Rs 250 billion due to lack of capital, said Rajendran. He plans to double it in three years after the Watsa deal. The bank will also have 1,000 branches, against 423 now, and will become a pan-India lender. Almost half its branches are in Kerala.
The capital from Fairfax is also important for CSB to return to profit by FY20. It posted a Rs 975-million loss in FY18 due to higher provisioning and write-offs on account of non-performing assets.
On initial public offering, Rajendran said the bank was going ahead with its plan to list by 2019 according to RBI’s direction. But sources in CSB said Fairfax may approach RBI to extend the deadline. One of RBI's conditions while approving the Fairfax-CSB deal, was that Fairfax should eventually reduce its holding in the bank from 51 per cent to 41 per cent.