The annual general meeting of Thrissur-based Catholic Syrian Bank (CSB), to be held on

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August 28, is expected to be stormy, with as many as 12 people contesting for two posts of director. The elections are crucial because any change in the composition of CSB’s board would have an impact on its proposed merger with Federal Bank.

“Out of the 12 directors on board, three are retiring. It has been decided to fill two positions and leave the third one vacant,” a person familiar with the development who did not want to be named. What makes the contest interesting is the fact that the result of the AGM would decide the future of CSB and whether it would merge with Federal Bank, Kerala’s largest bank. In the current board of CSB, eight persons are for and four are against the merger with Federal Bank. Of the three members who are retiring, two were against the merger and one was in favour. The position of the person in favour of the merger would be left vacant.

A person familiar with the development said as many as 12 people are contesting for the two positions, out of which 11 are backed by local groups, who are against the merger. CSB posted a net loss of Rs 8 crore in the first quarter, he said. While all banks performed well in the first quarter, CSB’s performance was lacklustre and this may affect its valuation, he added.