Edelweiss, the Indian financial services group, has expressed interest in taking a 5 per cent stake in small private sector lender Catholic Syrian Bank, the Economic Times reported.

The company already owns a 0.99 per cent holding in the Kerala-based firm and wants to purchase another 4 per cent from Bangkok-based NRI businessman Sura Chansrichawla, who owns a 24 per cent equity stake in CSB, the publication said. Chansrichawla has been on the lookout for buyers after the Reserve Bank of India told him to reduce his holding to 10 per cent.

The RBI is presently deliberating on the transaction in compliance with a court ruling that any transfer greater than 1 per cent of equity will require the regulator's approval. Edelweiss, which has a balance sheet of Rs8,000 crore ($1.7 billion), is also trying for a banking license in the country.

A decision is expected within the next few weeks.

In April, it was reported that Edelweiss Capital planned to hire 400 to 500 relationship managers within five years to boost its wealth management business.