Karnataka Bank plans to raise fresh capital

Karnataka Bank is planning to raise fresh capital to augment its capital adequacy ratio and fund its expansion plans.

The Bank intends to raise funds through the issue of equity shares on preferential basis and upper tier-II instruments by way of private placement.

The Bank's board of directors will take a decision in this regard on October 5, 2007, the bank sources said. The capital adequacy ratio stands at 12.72% during the first quarter ending June 30, 2007 compared to 11.27% at the end of June quarter last year.