The Hindu Business Line : Lord Krishna Bank gets shareholders' nod to hike capital

IN its bid to shore up its capital base, the Kochi-based Lord Krishna Bank has obtained the shareholders consent to increase its authorised capital from Rs 100 crore to Rs 300 crore.

Talking to Business Line, Mr R.M. Nayak, Managing Director of the bank, said that the board would decide at its next meeting the manner in which the subscribed capital base of the bank can be enhanced.

The bank will be exploring all avenues in this regard, public issue, rights issue and private placement..

The bank currently has a paid up capital of Rs 56.69 crore.

Talking about the future plans of the bank, he said that all banks in South India had grown rapidly when they expanded to India's commercial hubs in the West and North of the country.

During the last three years, Lord Krishna Bank had initiated similar moves.

From a mere one-branch unit in Mumbai the bank has now five branches, Mr Nayak said. Similarly, the bank has expanded from one to 15 branches in Delhi and North India in the last three years.

The bank is also adopting a pan-Indian face with branches in Jaipur, Pune and Ahmedabad.

In the changing paradigm of Indian banking, Mr Nayak said that there are two different approaches to growth.

One is through sheer growth in volume of business and the other is by creating good assets. Lord Krishna Bank plans to pursue the second path.

With this objective, the bank has been incorporating technology and optimally deploying human resources to tap the best of both.

The moves towards the West and the North of the country have also begun to pay dividends, Mr Nayak said.

The bank plans to increase its total volume of business to Rs 5,000 crore at the end of the current fiscal.