Karnataka Bank To Strengthen Finances With Rs 100 Cr Equity Infusion From ICICI Lombard
Karnataka Bank, headquartered in Mangaluru, has unveiled plans to bolster its financial strength with a fresh equity infusion of Rs 700 crore. The decision was reached during a board meeting held on Saturday, where the bank resolved to allocate Rs 100 crore worth of preferential shares to ICICI Lombard General Insurance.
The preferential shares are set to be priced at Rs 265.06 apiece, reflecting the bank's commitment to fortify its position in the market. This initiative follows a previous board decision in September of the last year to raise a total of Rs 1,500 crore.
In October, the bank successfully secured Rs 800 crore through a preferential issue of shares, marking a significant step in fulfilling its capital augmentation goals.
The proposed capital infusion is poised to serve as a catalyst for the bank's future growth, with a specific focus on addressing the evolving business landscape. Karnataka Bank outlined that the funds raised will be earmarked for meeting long-term capital requirements and general corporate purposes. The move is strategically aligned with the institution's dedication to ensuring stability and fostering innovation.
In a statement, Karnataka Bank MD & CEO Srikrishnan H said, "This proposed capital infusion is a validation of our positioning for growth and stability. We welcome ICICI Lombard General Insurance Co Ltd to our CapTable adding to the already well represented Institutional holdings. We are confident about our follow-up funding round that will attract marquee investors standing by our committed performance in the future."
