Lord Krishna Bank To Raise Capital Base To Rs 100 Crore

Lord Krishna Bank (LKB), one of the leading private sector banks based in Kerala, will raise its capital base from the present Rs 60 crore to Rs 100 crore in the current fiscal. The bank has decided to raise the amount through rights issue. V K Guptha , executive director of the bank, said that the premium of the issue had not yet been finalised.

He said that after the issue, the capital adequacy ratio of the bank would be to the tune of 14-15 per cent. The CAR, at present, is 12.9 per cent. He also said that the performance of the bank during the first quarter of the current financial year was satisfactory as the bank had earned a net profit of Rs 7.17 crore and the operating profit for the period was Rs 9.58 crore. The total business during the period was to the tune of Rs 1950 crore. The net profit of LKB during the last financial year was Rs 5.08 crore. Bank aims an operating profit of Rs 46 crore in the current financial year, Guptha said.

Moreover, 12 new branches and five new extension counters will be opened in 2001-02.

According to the long-term business strategy of the bank, by 2004, total business will be to the tune of Rs 8,800 crore. At an all-India basis, 12 ATMs will be opened in the current financial year, said Guptha.