Karur Vysya Ups Premium On Rights

Karur Vysya Bank (KVB) Ltd today said that it has increased the share premium on its simultaneous issue of bonus-cum-rights issue to Rs 50 per share from Rs 35 following the Reserve Bank of India's (RBI) instruction. The bank, currently, is awaiting the approval of the central bank.

Chairman A D Navaneethan said KVB had re-submitted its proposal to the RBI with revised premium, adding that the revised capital would increase to Rs18 crore after the issue. KVB, which has 60 lakh equity shares of Rs10 each, will place the share at 1:1 ratio. He said the bank had targeted a credit level of Rs 2,500 crore in the current fiscal- with an exclusive target of Rs 300 crore to finance agriculture, future rentals, retail trade, housing sector, purchase of two-wheelers and four-wheelers.

 

Despite high intermediation costs, increased debt provisions and lower recoveries, Navaneethan said the bank was able to post marginal increase in net profit to Rs72.05 crore on an income of Rs 515.05 crore during the fiscal ended March 2001 against a net profit of Rs 71.14 crore on a turnover of Rs 475.83 crore in the previous fiscal.

During the last fiscal, net NPA increased to 4.73 per cent from 3.97 per cent in the previous year. However, the capital adequacy ratio (CAR) has increased to 15.56 per cent from 15.16 per cent in the previous fiscal.

On the technology and connectivity front, he said that anywhere banking convenience would be extended to 32 branches in important centres in Tamil Nadu during this fiscal. At present, it has inter-linked three branches in Karur.