Demonetisation impact: Karnataka Bank’s rights issue to close on November 28

Demonetisation impact: Karnataka Bank’s rights issue to close on November 28

Mangalore Today News Network

Mangaluru, Nov 19, 2016: Mangaluru based Karnataka Bank Ltd has extended its rights issue by seven more days. The rights issue, which was scheduled to close on November 21, will now close on November 28. The issue opened on November 7.

The bank informed the stock exchanges late on Friday evening that the RBI circular dated November 8 has instructed all banks to accord top priority to provide facilities for exchanging and accepting deposits of ₹500 and ₹1,000 currency notes. It has also asked the banks to open additional counters to meet the public demand and keep the counters open for extended hours, if necessary. The RBI’s circular followed the demonetisation of ₹500 and ₹1,000 currency notes.

 

“In view of the above, members of the public are visiting the branches of the banks across India in unprecedented large scales, either to exchange or to deposit the specified banks notes. It is reported that shareholders of the bank are finding it difficult to submit their applications for the rights issue on account of the same,” it said.

In this regard, considering the inconvenience being caused to the shareholders of the bank and their inability to submit their composite application form in a timely manner, the Internal Capital Adequacy Assessment Committee vide circular resolution dated November 18, 2016, decided to extend the rights issue by an additional seven days, and accordingly the rights issue will close for subscription on November 28 in place of November 21 as disclosed in the Letter of Offer, the bank informed the stock exchanges.

The board of directors of the bank has decided to issue one share for every two shares held on the record date at Rs 70 per share, including a premium of Rs 60 per share.