Karnataka Bank to issue shares to IFC

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

Talking to newspersons after an extraordinary general meeting of the board, he said the preferential issue was made according to Securities and Exchange Board of India (SEBI) guidelines.

The shares will be alloted to the IFC after obtaining permission from the Reserve Bank of India, he said.

The IFC would also subscribe to the bank's Tier-II capital to the extent of ten million US Dollar. With this, the bank's Capital to Risk Weighted Asset Ratio will improve significantly, he said.

UNI