Head says Karnataka Bank to write off 1.45 bln rupees of farm loan

[K.Karthik Raja]

Head says Karnataka Bank to write off 1.45 bln rupees of farm loan
Wednesday, Jun 11

Karnataka Bank will write off 1.45 bln rupees farm credit under
the loan waiver scheme proposed by the finance ministry, Chairman
Ananthakrishna told,
It (the waiver) will be about 1.45 bln rupees. We are working on
the list (of beneficiaries eligible for waiver)," he said.
The bank's outstanding farm credit stood at 7.50-8.00 bln rupees
including direct financing of 3.75 bln rupees.
In the Union Budget for 2008-09 (Apr-Mar), Finance Minister P.
Chidambaram had proposed a 600-bln-rupee loan waiver scheme for
farmers, the size of which was later increased to 716.80 bln rupees.
The government has asked commercial banks to implement the scheme
by Jun 30.
The board of Karnataka Bank will meet on Jun 12 to consider the
rights issue of equity shares.
"The quantum of rights issue may or may not be decided on Jun 12.
We plan to raise the fund in Jul-Aug," Ananthakrishna said without
giving further details.
Capital adequacy ratio of the bank under Basel-I norms is
currently 12.17%. At 12:30PM, Karnataka Bank shares were trading
at 185 rupees on National Stock Exchange, down 0.5% over close
Tuesday. End