Hit by growing bad assets, two private sector lenders from southern India \u2014Karur Vysya Bank (KVB) and Lakshmi Vilas Bank (LVB) \u2014 on Tuesday announced their plans to raise capital. Both the banks, in the genre of old private sector banks, had suffered bottomline squeeze in Q4 of FY 2018. KVB had reported a 76.76% drop in its net profit at Rs 50.56 crore for the fourth quarter as compared to Rs 217.56 crore in the corresponding quarter previous fiscal, courtesy increased provisioning towards sticky assets. The bank\u2019s asset quality has taken a beating in the fourth quarter with gross NPA touching 6.56% as compared to 3.58% in the same quarter last fiscal. Similarly, net NPA was at 4.16% as compared to 2.53%. Provisions for bad loans increased by 81% year-on-year to Rs 394.17 crore in Q4 of FY18 as against Rs 217.50 crore in the corresponding quarter last fiscal. LVB had reported a net loss of Rs 622.25 crore for the fourth quarter of FY 18 as against a net profit of Rs 52.16 crore in the same quarter last fiscal. Total income of the bank was decreased by 14.34% at Rs 740.90 crore as compared to Rs 864.99 crore. Gross NPA of the bank zoomed to 9.98% as compared to 2.67% while net NPA increased to 5.66% from 1.76%. Provisions for bad laons jumped to Rs 921. 41 crore for the quarter as against Rs 108.19 crore in the corresponding quarter last fiscal. The board of directors of KVB on Monday approved the proposal for domestic fund raising to the tune of Rs 1,200 crore by way of issuance of Basel III compliant unsecured tier I or tier II capital instruments in single or multiple tranches either through private placement basis or preferential allotment of shares. The bank is also looking at qualified institutional placement (QIP) option. Besides, the board of KVB has decided to issue bonus shares in the ratio of 1: 10, that is, one equity share of Rs 2 each for every ten fully paid up equity shares. \u201cThe proposal of issuance of bonus shares was not part of the original agenda, and was decided duing the course of the meeting,\u201d KVB told the stock exchanges in a regulatory filing.