Karnataka Bank to issue 63,73,000 shares to IFC

Mangalore, Oct 31 (UNI) The Board of Mangalore based private sector bank Karnataka Bank has approved issue of 63,73,000 equity shares of Rs 10 per share at a premium of Rs 215 per share to US based International Finance Corporation (IFC), Bank Chairman Ananth Krishna said today.

Talking to newsmen after extraordinary general meeting of the Board, he said that the issue was on preferential basis as per SEBI (DIP guidelines).

Shares will be allotted to IFC after obtaining permission from RBI, he said adding that IFC also subscribing to Bank's upper tier Two bars to the extent of USD 10 million. With the issue of the shares and bar the Capital to Risk Weighted Asset ratio (CRWA) of the Bank will improve significantly.

UNI