Karnataka Bank plans to raise upto Rs 500 crore through QIP

Bank's capital adequacy ratio is at 13.2 and as and when there is aggresive credit growth, they may go in for this fund raise

Karnataka Bank, the Mangalore-based private sector bank, has said that it is planning to raise upto Rs 500 crore through a QIP (Qualified Institutions Placement) issue.

The bank, which has been constantly in the news as a prime takeover target, said that their capital adequacy ratio is at 13.2 and as and when there is aggresive credit growth, they may go in for this fund raise.

"This is an enabling resolution and the timing and the amount will be decided on various factors," P Jayarama Bhat, CMD, Karnataka Bank said. Karnataka Bank had earlier during January 2010 raised Rs 160 crore through the QIP route.
 

The shares of the bank gained little over 3% to close at Rs 160 a share on NSE on Wednesday.