Federal Bank plans rights issue next month

MUMBAI: Kerala-based private sector lender Federal Bank, plans to raise nearly Rs 2,000 crore through a rights issue next month, a top bank official said.
   
The fund-raising is to support its expansion plans, he said.
   
"The rights issue will be held between December 17 and January 15, and will be done in the ratio of 1:1," Federal Bank Chairman and Chief Executive Officer M Venugopalan told on the sidelines of a banking conference here today.
   
Post issue, the number of shares of the bank is expected to increase to nearly 17 crore from the current figure of 8.5 crore.
   
The bank has fixed the issue price at Rs 250 per equity share for a face value of Rs 10 each, he said.
   
The net worth of the bank is expected to go up to Rs 4,000 crore after the issue.

The bank's total income, for the half year this fiscal, increased by 37.77 per cent at Rs 1,334.76 crore against Rs 968.84 crore in the year-ago period, while operating profits went up by 44.44 per cent to Rs 365.05 crore against Rs 252.74 crore.
   
Net profit during H1 FY08 rose by 48 per cent to Rs 162.27 crore from Rs 109.64 crore recorded during the previous year.