The rights issue of Karnataka Bank Ltd has been subscribed 1.53 times, according to Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank.

Mr Bhat told Business Line here on Wednesday that the bank came out with a rights issue in the ratio of 2:5 (two shares for every five shares held). The issue opened on March 8 and closed on March 22. “The issue was oversubscribed by 1.53 times,” he said.

The new shares have already been allotted and the refund orders sent. The new shares will be listed on the stock exchange with effect from April 6, he said. The bank mobilised Rs 457.04 crore from the issue.

With this issue, the total capital of the bank has increased from Rs 134.42 crore to Rs 188.19 crore. On account of that, the net-owned funds increased to Rs 2,285 crore (Rs 1832.74 crore), he said.

Mr Bhat said that the bank has set a business turnover target of Rs 54,000 crore for 2011-12.

This would comprise Rs 32,500 crore of deposits and Rs 21,500 crore of advances. The total business of the bank reached Rs 44,600 crore during 2010-11, he added.

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