Karur Vysya Bank (KVB) is planning a rights issue this financial year. It plans to raise Rs 450 crore before May. The bank is planning to raise Rs 300-325 crore before March. The remaining amount would be raised by May. KVB’s capital adequacy ratio stands at 14 per cent and the proposed fund-raising will help it sustain growth over the next two years.
The proposed fund-raising plans are to support its business target of Rs 1.25 lakh crore. The bank is targeting business worth Rs 50,000 crore by March 2012. For 2016, the bank has a business target of Rs 1.25 lakh crore, including Rs 75,000 crore deposits and Rs 50,000 crore advances. To support this, it may have to increase our net-owned funds to Rs 4,000-5,000 crore, from Rs 2,100 crore, which includes the proposed Rs 450-crore rights issue.
As on March 31 this year, KVB’s total business stood at Rs 32,946.85 crore, an increase of 28.38 per cent year-on-year. As for its expansion plans, the bank’s 360 branches would be increased to 450 next year. Currently, it employed 4,400 people and this would double by 2015.
Company Name | CMP |
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HDFC Bank | 1740.55 |
ICICI Bank | 1277.05 |
Axis Bank | 1138.00 |
Kotak Mahindra Bank | 1750.00 |
Indusind Bank | 996.65 |
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