LVB to raise Rs 265 cr via rights issue

Karur-based Lakshmi Vilas Bank (LVB) is planning to raise Rs 265 crore through rights issue.

The proposed money will help the bank augment its capital base, said managing director VS Reddy.

The bank would raise the money via rights issue of 1:1 to the existing shareholders.

He said the bank’s current capital adequacy ratio was at 10.1 per cent, which was expected to go up to 12.5-13 per cent by March 2010. There will be no further equity issuance in this year.

LVB was also looking to meet its business target of Rs 17,000 crore for the current fiscal.

“We are also looking at raising another Rs 100 crore through tier II bonds, during the current fiscal,” said Reddy.

 

The bank currently has 253 branches, which will be increased to 276, he added.