Karnataka Bank MD & CEO Srikrishnan H said in a statement: "We are happy to have completed a successful Capital raise through Pref Allotment of Rs. 800 crore to 5 Marquee Institutional Investors. This is a major step in our transformation journey providing us the growth capital that will facilitate all our developmental activities.”
Karnataka Bank has announced plans to raise approximately Rs 1,500 crore in fresh capital through a preferential issue, rights issue, QIP, or other permissible modes. The bank s board has approved the issuance of equity shares to several companies. The funds raised will be used to strengthen the bank s financial foundation for future growth and meet the needs of its growing business.
Karnataka Bank: ICICIdirect said the cost of funds may increase in the near term but the focus on liabilities accretion, improvement in CD ratio and shift from low yield business is expected to offset pressure
Karnataka Bank share price: Domestic brokerage Axis Securities has given a 'Buy' call on the counter with a target price of Rs 250 over a period of 12 to 18 months. "The management is centralizing processes to build capacities on the operational and technological side as well as to deploy sales teams outside the branches," it stated.