Private lender South Indian Bank today said it proposes to raise Rs 20 crore through private placement of shares to fund business growth. “The price, time of the issue etc will be intimated in due course,” South Indian Bank said in a filing on stock exchanges. The board of the bank at its meeting held today decided to augment the paid-up capital by issue of up to 20,00,00,000 equity shares of face value Re 1 each through Qualified Institutional Placement (QIP), the filing said.
The bank posted a muted 3.25 per cent increase in net profit at Rs 115 crore for the third quarter ended December as against Rs 111.38 crore in the same period a year ago. The gross non-performing assets (NPAs) of the bank declined to 3.4 per cent of the total advances during the third quarter, from 3.98 per cent in the same quarter previous fiscal. Shares of the bank were trading 1.77 per cent down at Rs 33.25 on BSE.