UPDATE 1-Capitol Bancorp to sell 4 Michigan banks for $52 mln

(Recasts, adds details)

March 31 (Reuters) - Capitol Bancorp Ltd CBC.N agreed to sell four affiliate banks in Michigan to privately held Northstar Financial Group Inc for about $52 million as it seeks funds to enter new markets.

The affiliates have combined assets of $420 million, the bank holding company said in a statement.

Michigan represents the largest part of assets within the Capitol Bancorp network with 13 affiliate banks and assets totaling $1.7 billion as of Dec. 31.

Shares of the company closed at $21 Friday on New York Stock Exchange. (Reporting by Sweta Singh; Editing by Deepak Kannan)