Market regulator Sebi has given approval to private sector lender Karnataka Bank's rights issue, allowing it to tap the capital market.
According to Sebi data, the bank filed the draft with the regulator on October 18 last year and it was given approval on January 14, 2011. Edelweiss Capital Limited is the lead manager to the issue.
Last year, the board of the Mangalore-based bank approved issue of two equity shares for every five shares held in the firm to its shareholders by subscribing to the issue. The bank intends to expand the capital base of the bank in line with the future needs through the issue.
In 2009-10, the bank's net profit stood at Rs 167.12 crore against Rs 266.70 crore in the previous year. The total income was at Rs 2,354.68 crore in the last fiscal compared to Rs 2,270.55 crore in 2008-09.
Each share of Karnataka Bank was trading at Rs 150.20, up 0.43 per cent on BSE, from the previous close.