Date:06/07/2007 URL: http://www.thehindubusinessline.com/2007/07/06/stories/2007070652520601.htm

Back Kotak Bank hikes borrowing limit

Our Bureau

Mumbai, July 5

Kotak Mahindra Bank has increased its borrowing limit from Rs 5,000 crore to Rs 15,000 crore. The bank has decided to increase borrowing limits over and above the aggregate of the paid up capital of the bank and its free reserves at any time, said a BSE announcement by the bank.

According to a senior bank official, raising the borrowing limit is just a normal exercise for the bank to meet its requirements in the future but as of now the capital adequacy ratio of the bank is quite comfortable. The bank's capital adequacy ratio as on March 31, 2007, is at around 13.46 per cent. The bank at its annual general meeting, today, also approved a dividend of 7 per cent as recommended by the board of directors.