South based lender, Karur Vysya Bank has decided to raise Rs 450 crore via rights issue.

"We have got all the approvals internally and will be approaching (financial sector regulator) Sebi in 15-days time for coming out with a rights issue," the bank's Managing Director and Chief Executive Officer P T Kuppuswamy said.

The bank has set the price per share at Rs 150 and all existing shares can get two shares for every five shares , said Kuppuswamy.

"Our last rights issue was in 2006 and we go for a rights issue every four-years," Kuppuswamy said.

After the rights issue, the capital adequacy ratio of the bank is expected to reach 16% from the existing 14%.