The Jaipur-based private sector bank will have have a CAR of 6 per centafter its Rs 67.28 crore rights issue goes through, and after aggressiverecoveries, the CAR is expected to touch 8 per cent as on March, 31,2000.Currently the bank's CAR is a shade over 1 per cent.

The bank has collected half of the targeted amount through a rights issueand is hopeful for a easy sailing for its ongoing issue, BoR's chairman, PKTayal, told a press conference on Tuesday. SBI Capital Market is the leadmanager to the issue. Tayal told The Financial Express that RBI and theMinistry of Finance was treating the BoR case as a litmus test for corporateentry into the banking sector.

"The future entry into the banking sector by corporates will depend on howwell the turnaround plan is implemented. So far it has been successful, wehave been able to show profits of Rs 2 crore in the second quarter of thecurrent financial year", Tayal said.

The RBI governor Bimal Jalan had indicated in an interview to The FinancialExpress that the central bank is willing to take a case by case decision oncorporate takeover of banks. The RBI along with the ministry of finance hadearlier disallowed direct corporate entry into the banking sector. "Why justthe private sector banks, the corporates should be gradually be asked totake over the public sector banks also", Tayal who is also the chief of theRs 2,000-crore Shree Krishna Textiles group said. Tayal said that the bankhad recovered nearly Rs 28 crore of non-performing assets (NPAs) in thecurrent financial year and has targeted a recovery of Rs 100 crore by theend of FY 2000, he said. NPAs of Rs 359 crore is likely to come down in thecoming years, the part-time chairman said.

According to Tayal, the bank had collected about Rs 31 crore, nearly half ofthe total issue amount during the last fifteen days.