KVB may issue shares to raise capital

In order to ramp up its capital base, Karur Vysya Bank
is considering to issue shares worth Rs 1,000 cr in one or more tranches through qualified institutional placement (QIP) route.

Alternatively, the bank, which was set up in 1916 by MA Venkatarama Chettiar and Athi Krishna Chettiar, may raise the investment cap for the FII upto a limit of 40 percent of its paid-up capital subject to RBI approval. It is planning fund raise to augment its capital base.

The bank started as a venture with a seed capital of Rs 100,000 and has grown into a leading financial institution that offers the wide gamut of financial services to millions of its customers.