Mumbai, March 15: Karur Vysya Bank Ltd (KVB) will come out with a 1:1 bonus share issue and a rights offering at a premium of Rs 35 per share. The bank announced its bonus-cum-right issue after its board meeting which was held in Delhi on Thursday. The board has passed a resolution to offer bonus-cum-right shares to shareholders with attractive premium. The proposal is subject to the clearance of the Reserve Bank of India (RBI) and the Securities and Exchange board of India (Sebi). Said KVB in a press release:"The bank, with a very comfortable capital adequacy ratio (CAR) of 16 per cent, intends beefing up its capital funds further. The bank's capital funds which are now in the region of Rs 300 crore will further improve to Rs 350 crore plus, after the proposed rights issue and the normal accretion to the reserves from the generation of profits." KVB claimed that it has always been giving higher returns to its shareholders by increasing dividend rates over the years and it has paid a higher dividend of 60 per cent during the year 1999-2000. KVB was the first bank in the recent past to come out with a bonus-cum-rights issue in the year 1999 in the ratio of 1:1 (both bonus and right shares) with rights with a premium and there was overwhelming response to the issue.
KVB is the only bank to offer bonus shares a second time to its shareholders. KVB posted an all-time high profit of Rs 71.14 crore during the last fiscal. Earning per share was Rs 118.57 while the book value stood at Rs 434.50 as of March 31, 2000.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
