 "South Indian Bank net profit up 45.6%")
The shares of private sector lender South Indian Bank rose by 5.37 per cent on Thursday on the National Stock Exchange after the lender's board approved the terms to raise Rs 1,151.01 crore through a rights issue.
The bank will issue 523.1 million rights shares at Rs 22 each on a fully paid-up basis.
A rights issue is when a company offers its existing shareholders additional shares at a discounted price to raise funds without seeking external investment. Only existing shareholders of the company have the right to participate in rights issues.
The rights issue of the Thrissur-based South Indian Bank will open on March 6, 2024, and close on March 20, 2024. The record date has been fixed as February 27, 2024, for the rights issue.
According to the terms of the offer, shareholders of the bank will receive 1 equity share for every 4 fully paid-up equity shares held.
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The bank’s outstanding equity shares prior to the rights issue are 2,092,741,018, which is estimated to rise to 2,615,926,272 equity shares, assuming the rights issue is fully subscribed.
In Q3FY24, the bank’s net profit stood at Rs 305.36 crore, 197 per cent higher than Rs 102.75 crore in the year-ago period. The gross non-performing assets (NPA) declined by 74 basis points (bps) from 5.48 per cent to 4.74 per cent year-on-year (YoY). Net NPA dropped by 65 bps from 2.26 per cent to 1.61 per cent YoY.
At 11:30 AM, shares of South Indian Bank traded 4.76 per cent up at Rs 34.10 on the National Stock Exchange.
