Two South-based banks Dhanalakshmi and Lord Krishna Bank’s announced their intention to rights issue before the end of the year. Dhanalakshmi Bank net worth is a little over Rs 74 crore, the bank would need to raise approximately Rs 26 crore to get to the

Rs 100-crore mark and thiswould imply at a rights issue ratio of 1:1 at a premium of Rs 10 per share, but these are finer details which have yet to be worked out The bank's Chairman, Mr T.M. Venkataraman,said that the bank had applied for the RBI's approval in this regard.

Lord Krishna Bank plans to come out with a rights issue during the course of the current year in order to enhance its capital base from the current level of Rs 60 corer to Rs 100 crore.

Subsequent to the rights issue, its capital adequacy ratio was expected to rise to 14 per cent from the current level of 12.90 per cent and the same was, confirmed by the Executive Director of the Bank V K Gupta.

The bank has performed well during the first quarter of the current year with the total business turnover growing to Rs 1950 crore and its business turnover was Rs 1875.90 crore at the end of the year and deposits stood at Rs 12.28 crore while advances were Rs 647.90 crore.