The south-based Lakshmi Vilas Bank (LVB) today said it will augment its capital base by raising up to Rs 500 crore through a qualified institutional placement (QIP) by September this year.
"We already have shareholder approval for the issue since last year but now I think we will go in for the QIP and raise Rs 400 to Rs 500 crore," LVB managing director and chief executive P R Somasundaram told PTI over the phone after the announcement of its results.
The bank posted a net profit of Rs 27.3 crore for the quarter ended March 31, as against a net loss of Rs 20.77 crore for the corresponding period last year, on the back of tackling high incidence of non performing assets (NPA), he said.
For the full fiscal, the bank's net profit jumped by 230% to Rs 101.1 crore.
The capital raised will be used for normal lending activity, Somasundaram said.
The bank's total capital adequacy ratio stood at 13.3% as of March 31, 2011 and with the infusion, it will grow to over 14% after assuming the growth in credit, he said.