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Wednesday, Nov 10, 2004

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Karnataka Bank board okays rights issue

Our Bureau

Mangalore , Nov. 9

THE board of the directors of Karnataka Bank Ltd has decided to issue equity shares on rights basis. The board, which met in Bangalore on Tuesday, has taken a decision in this regard, according to its Chairman and Chief Executive Officer, Mr Anantakrishna.

Asked about the reasons for coming out with a rights issue, Mr Anantakrishna told Business Line that the bank wants to increase its equity base to Rs 120 crore with this issue. At present, the equity base of the bank is Rs 40 crore.

The offer will be priced at Rs 20 per share. The bank will offer shareholders two shares for one share held.

To a query on when the issue will be opened, he said details were being worked out and "we will be communicating all these details to the stock exchange".

The promoters' holding in the bank was nil as on March 31, 2004. Indian public held a majority of shares (77.5 per cent) followed by corporate bodies (14.47 per cent), FII (4.71 per cent), mutual funds (1.18 per cent), banks, insurance companies etc (0.96 per cent), others such as clearing members and trust (0.90 per cent) and NRIs (0.28 per cent) as on March 31, 2004.

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Karnataka Bank board okays rights issue

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