The Hindu Business Line : South Indian Bank to raise Rs 150 cr through public issue

Of this, Rs 15 crore worth shares have been reserved for allocation to employees and an equal number to the existing retail shareholders. The net offer to the public is Rs 120 crore.

The issue opens on February 10 and closes on February 15.

Dr V.A. Joseph, Chairman and Chief Executive Officer of South Indian Bank, said the public issue is to augment the bank's capital base to meet the capital adequacy norms under Basel II and the growth in assets.

For the first nine months of this fiscal, the bank's net profit was Rs 34.5 crore and the interest earned was Rs 559 crore.

ICICI Bank currently holds 9 per cent stake in South Indian Bank.

Post the issue, the stake will come down to 7 per cent, Dr Joseph said. As per the RBI guidelines, ICICI Bank will have to bring down the stake to 5 per cent.

About South Indian Bank's 10 per cent stake in Bharat Overseas Bank, Dr Joseph the matter would be discussed by the board.

South Indian Bank shares closed at Rs 67.80 on Monday on the BSE as against Rs 69.75 on Friday.

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