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L.N. Revathy

Coimbatore , May 17

Karur Vysya Bank is contemplating a bonus and rights issue. The bank has, in a communication to the BSE, said its board would consider and discuss this issue at the meeting on May 25.

When contacted, the KVB Chairman, Mr P.T. Kuppuswamy, told Business Line that the proposed issue is to meet the future requirements under the Basel II norms. "We have a comfortable capital base at present. Our Capital Adequacy Ratio is between 15.5-16 per cent. A quick look at the credit portfolio will reveal that our advances have surged by between Rs 1,000-1,200 crore. To meet the increasing requirement we will need adequate capital and funds liquidity. The issue would be discussed at next week's meeting,'' he said.

At the close of the last fiscal, the Indian promoters' holding in the banks' equity was just about 4.07 per cent while the institutional investors' holding aggregated to 26.9 per cent. The general public held over 55 per cent and the balance by the NRIs and private corporate bodies.

The total foreign shareholding (including GDR) was 37.63 lakh shares representing 20.93 per cent of the total capital.

The shares, which were traded at over Rs 490 at the start of the current fiscal, touched a high of Rs 629 before closing at Rs 581.70 on May 15. The traded volumes more than doubled from May 12-15 from 52,799 shares to 1.51 lakh shares.

More Stories on : Private Banks | Bonus Announcements | Rights Issue

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