KVB to raise Rs 760 cr via rights issue, price fixed at Rs 76 a share

Bank to offer one share for every six held; issue proceeds to be used to fuel growth

Karur Vysya Bank is planning to raise around Rs 760 crore through a rights issue, in order to fund its future growth.

The Board of Directors of the Bank met today and decided to issue equity shares via rights issue to its eligible shareholders in the ratio of one equity share for every six held on a record date.

K Venkataraman, Managing Director and Chief Executive Officer of the Bank, said that the bank plans to raise funds as soon as the necessary approvals are in place. The funds would be used to fuel growth, which is expected to rise this fiscal on the back of overall economic growth.

The company is expecting a growth of 12-15 per cent this year, he added.

The issue price has been fixed at Rs 76 per equity share, with a premium of Rs 74 per equity share.

The company's total income grew to Rs 6,404.57 crore during the year ended March 31, 2017, from Rs 6,150.21 crore the previous year. Its net profit stood at Rs 605.98 crore during the fiscal year 2016-17, up from Rs 567.63 crore the previous year.

The company has seen its growth recovering during the last quarter and expects the economy to grow further during the current fiscal year.