Karnataka Bank Ltd has raised Rs.250 crore by issue of Non-Convertible Subordinated Debt instruments in the nature of Debenture (Lower Tier 2 Bonds) on private placement basis. The issue of bonds with a tenor of 10 years was opened for subscription on October 22, 2012 and closed on November 12 2012.
The Rs.125 crore issue with a right to retain oversubscription to the extent of Rs.125 crore received huge response from the investors resulting in the oversubscription by 100%.
The Bank Capital to Risk Weighted Assets Ratio (CRAR) as on March 31, 2012 was 12.84% consisting of Tier 1 Capital fo 10.86% and Tier 2 of 1.98%. With the above issue of bonds, the capital funds of the bank have further improved which will enable the bank to further expand the credit portfolio in the coming days.
The Karnataka Bank Ltd stock was trading at Rs.141.35, down by Rs.0.30 or 0.21%. The stock hit an intraday high of Rs.143 and low of Rs.140.10.
The total traded quantity was 2.56 lakhs compared to 2 week average of 6.08 lakhs.