Karnataka Bank Ltd is likely to raise funds through a rights issue. The bank informed the BSE on Monday that it proposes to discuss the issue at a meeting of its board scheduled for September 14. The shareholders of Karnataka Bank had approved the resolution to increase the capital of the bank in its annual general meeting on August 30.
The present authorised and paid-up capital of the bank are Rs 200 crore and Rs 188 crore, respectively. At the 88th annual general meeting, the shareholders of the bank had approved the proposal to increase the authorised share capital from Rs 200 crore to Rs 300 crore to facilitate further issue of equity shares. The bank’s shares closed at Rs 83.90 on Monday, down 0.89 per cent, against the previous close of Rs 84.65.