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Our Bureau

Mangalore , July 6

The 82nd annual general meeting of the shareholders of Karnataka Bank Ltd here on Thursday adopted a resolution to increase the foreign institutions investment limit in the bank from the present 24 per cent to 49 per cent. Though a majority of the shareholders gave their approval to this move, three shareholders voted against this.

Moving the resolution number 11 at the AGM, Mr Anantakrishna, Chairman and Chief Executive Officer of the bank, said that though the bank could take the FII limit to 74 per cent, it is not doing so. It will, however, seek the approval of the shareholders to increase the FII limit from 24 per cent to 49 per cent.

Three shareholders, who opposed this resolution, said that this move would lead to FIIs interference in bank's activities and expressed fears that it may lead to acquisition of the bank.

Answering this, Mr Anantakrishna said that though foreign investment in the bank amountedto around 22 per cent, no FII has interfered in the bank's activities. On the acquisition fears, he said the shareholders are the deciding factor in the case of acquisition of any bank. "It all depends on you (shareholders). Though there were rumours of acquisition for the past three years, we have been able to keep the bank with us. The bank will remain with us in future also," he said.

Finally, the AGM adopted a resolution to increase the foreign institutions investment limit to 49 per cent with three votes against it.

The shareholders also gave their approval for the introduction of stock option scheme for employees.

The AGM also approved a resolution to pay a dividend of 30 per cent to shareholders for the year ended March 31.

The shares of Karnataka Bank Ltd ended at Rs 91.40 at BSE on Thursday against the previous closing of Rs 93.20.

More Stories on : Private Banks | Foreign Institutional Investors

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