| Kalantri is spearheading the bid for acquiring stake in the Satara-based bank through his business entities under the Balaji group banner. |
| "We have given our proposal to the bank including business plans and fund raising strategies," said Kalantri. He is also the president of All India Association of Indian Industries. |
| The Balaji group-led investors face competition from another clutch of investors, being advised by investment banker Udyan Bose. Bose made a presentation to the bank last week. |
| The Balaji group-led investors have sought allotment of shares on a preferential basis along with board representation. |
| The bank has sought detailed profile of prospective investors and the source of funds, banking sources said. |
| Any decision by the bank's board will be subject to the Reserve Bank of India's approval. Before giving its decision, the apex bank would carry out due diligence on sources of funds to be brought by investors. |
| The bank's capital adequacy ratio stood at 3.15 per cent as on September 30, way below the RBI-stipulated minimum of 9 per cent. |
| The bank has already initiated plans to augment its capital base by Rs 200 crore by March. It recently received approval from the Securities and Exchange Board of India for its much-awaited rights issue. |
| Prior to the rights issue, bank would allot bonus shares to shareholders in the ratio of one bonus share for every five shares held, taking paid-up capital base to Rs 36 crore. |
| Post rights issue, paid-up capital would grow to Rs 54 crore. The bank plans to raise another Rs 125-150 crore in 2006-07. |
| Its net non-performing asset stood at 6.74 per cent and gross NPAs at 12.89 per cent in September. |
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