SIB to hike share capital

Mumbai, Nov 18 | Updated: Nov 19 2005, 06:20am hrs
The South Indian Bank has decided to augment its share capital by way of a follow on public offer, up to the maximum issue size of Rs 150 crore, subject to approval of RBI and other regulatory authorities. The bank plans to tap the market this financial year itself. The networth of the bank was increased recently from Rs 381.77 crore to Rs 468 crore on account of a rights issue and also by raising Tier II bonds for Rs 65 crore during the year.

The follow-on public issue will enable the bank to raise its networth further to Rs 658 crore. The banks chairman and chief executive officer VA Joseph said that they plan to increase the banks capital adequacy ratio (CAR) to 13% by March 2006. The banks CAR at the end of September 2005 was 10.28% from 9.90% in the corresponding period last year.