Lord Krishna Bank Float Next Year

The Kochi, Kerala-based Lord Krishna Bank is looking at going public next year as and when the stock market sentiment improves.

The bank is also exploring the possibilities of strategic tie-up with a foreign bank.

Ashwini Puri, director, Lord Krishna Bank, said, "The bank is looking at going public in 2002 as and when the market opens up. We are in discussion with other foreign banks too."

However, he did not want to comment on the discussions with foreign banks whether it was for a technological tie-up or a strategic tie-up.

The bank has currently 87 branches of which 65 banks are in Kerala.

 

Puri said the bank is on an expansion mode. "In the last six months we have opened 12 branches and by October-end we will have a 99-branch network. We are expanding in the north and west. We have been able to double business from January 2000, and expect to close the year with a Rs 25 crore net profit."

Lord Krishna Bank had posted a net profit of Rs 7.5 crore in the first quarter of the fiscal compared with around Rs 1.5 crore for the corresponding period in the previous year.

The bank will come out with a rights issue, which has to be ratified at the annual general meeting, of Rs 40 crore before December.

However no decision has been taken on the pricing and also on the merchant banker, said Puri.

The promoters stake in the bank is above 51 per cent and the bank has around 10,000 shareholders.

The paid up capital of the bank is currently at around Rs 29 crore which will increase after the rights issue to Rs 60 crore. Puri added that, "The net worth of the bank will cross Rs 100 crore by 2002 after the rights issue."

The bank is also looking at centralised banking system. "We will be offering Internet banking, phone banking and anywhere banking too," said Puri.

Lord Krishna Bank has strengthened its board by inducting three new directors -- R C Bhargava, ex-chairman and managing director of Maruti Udyog, Arun Duggal, ex-managing director of Bank of America, and D C Singhani.