Daijiworld Media Network- Mangalore (KM/SM) - pics - Dayanand Kukkaje

Mangalore, Oct 31: Members of the city-based private sector Karnataka Bank Ltd have approved the issue of equity shares to International Finance Corporation (IFC) Washington, said Ananthakrishna, chairman and CEO of the bank at the bank's HO here.

He was speaking at a press conference here on Wednesday October 31.
 
He was briefing media persons regarding Karnataka Bank's decision to issue shares to IFC.

Explaining why the bank has opted for IFC amidst other potential alternatives, he said that as per the norms laid by Reserve Bank of India (RBI) recently, the bank thought of other institutions that will make investments in the bank. Later it learnt that inviting other institutions will lead to interference into the bank's administration. In the case of IFC the bank has no such apprehensions, he added.
 
Members of the bank have accorded consent to issue 63,73,000 equity shares of Rs 10 each on preferential basis as per SEBI (DIP) guidelines to IFC.  Shares will be issued at the price of Rs 225 share including the premium of Rs 215 per share, he added.
 
Shares will be allotted to IFC after obtaining permission from RBI. IFC is also subscribing to bank's upper tier 2 bonds to the extent of US Dollar ten million. With the issue of theses shares, CRAR of the bank will improve significantly, he informed.
 
KH Shivaswamy Aithal, general manager, GK Bhat, general manager, P Jayaram Bhat, chief general manager and NS Chakkera, general manager were present at the press conference.