The Hindu Business Line : ING Vysa calls EGM to discuss pref issue

ING Vysya Bank Ltd has convened an extraordinary general body meeting on November 6 for raising its paid-up equity through a preferential allotment to the ING group and to Qualified Institutional buyers (QIB).

A statement said that the issue was to increase risk weighted asset ratio from the current level of 10.51 per cent.

The proposal involved a preferential issue of 60.73 lakh share to the ING group’s Mauritius-based subsidiaries, ING Mauritius Holdings and ING Mauritius Investment at a price of Rs 258.34 per share. To the QIBs, the proposal involved issue of 74.75 lakh shares, at a price to be determined later.

During the last quarter, equity of the ING Vysya bank increased after employees exercised their stock options and converted them to 1,33 lakh shares. However, about 39,280 unexercised options lapsed. After conversion the paid-up equity increased to Rs 91.40 crore as against Rs 9.09 crore during Q1 of FY08. The net worth of the bank was Rs 1065.22 crore.

The bank reported a net profit of Rs 45.98 crore, an increase of 11.09 per cent over the corresponding period of the previous year. The profits were driven partly by the 25 per cent increase in advancesto Rs 12,565 crore for the period.

What also helped was the reduction in the gross non-performing assets to 2.06 per cent

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