Mangalore-based Karnataka Bank has informed that the Board of Directors of the Bank at its meeting held on May 25, 2009, has resolved to seek shareholders approval to raise Rs 500 crore through qualified institutional placement (QIP).

Further, in a separate announcement, the lender has notified that it has registered a growth of 37% in its net profit at Rs 83.14 crore for the fourth quarter ended March 31,
2009, against Rs 60.78 crore in the corresponding quarter a year ago.

However, total income surged 35% to Rs 641.8 crore from Rs 475.18 crore.

For the year ended March 2008, the bank has posted a net profit of Rs 266.70 crore, up 10.32 per cent from Rs 241.74 crore in the same period last year.

Karnataka Bank has recommended dividend @ Rs 6/- per share on the face value of Rs 10, for the year ended March 31, 2009.

At 12:35 pm, the shares of private sector lender were trading at Rs 140, down 2% compared to previous close of Rs 143.