KVB likely to raise Rs 500-cr via QIP

Written by Sajan C Kumar | Chennai | Updated: Jun 29 2009, 04:14am hrs
The general body meeting of the Tamil Nadu-based private sector Karur Vysya Bank (KVB) slated for July 27 will seek shareholders consent for the proposed Rs 500-crore rights issue via qualified institutional (QIP) route. The board of directors of the bank on Friday cleared the proposal for a rights issue

Kuppuswamy, managing director and CEO of the bank told FE that after the general body gets the shareholders nod the bank will proceed accordingly. There are a number of steps that we need to take before we arrive at specificities of the issue.

He said once the bank gets all the necessary regulatory approvals it can move further and start the process of identifying qualified institutional buyers. Negotiations for the same have to be conducted and bank has to fix a rate for the issue. Merchant bankers have to be appointed in due course, he added.

Karur Vysya Bank had reported a 18.83% rise in its net profit at Rs 83.82 crore for the quarter ended March 31, 2009 against a net profit of Rs 70.54 crore in the same period the previous year. The total income of the bank also rose to Rs 435.19 crore in the quarter ended March 2009, from Rs 354.20 crore in the same quarter in March 2008. The total income of the bank for the year 2008-09 rose by 32.73% from Rs 1,289.33 crore to Rs 1,711.30 crore.