In addition to this, at a board meeting held today, the bank is going in for a Rights Issue. In a statement, Karnataka Bank said it has decided to issue equity shares to the existing shareholders on rights basis at a price of Rs 100 per share including the premium of Rs 90 per share in the ratio of one equity share for every five equity sharees held on the record date to be fixed in due course.
These decisions come in the wake of RBI recently rejecting Karnataka Bank's move to offload close to 5 per cent stake to IFC through preferential allotment by which the Bank would have raised close to Rs 140 crore.
