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Policemen outside Karnataka Bank in Chennai on Sept 12, 2016.IANS

Banking institution Karnataka Bank Ltd has extended its rights issue by seven more days. The rights issue, which was previously scheduled to close down on Monday, November 21, will now close a week later on November 28. 

In a regulatory filing to the Bombay Stock Exchange, the bank cited the central bank's instruction to all banks to give top priority to exchanging and depositing Rs 500 and Rs 1,000 currency notes. Additionally, the Reserve Bank of India (RBI) has asked the banks to open additional counters for extended hours.

"In view of the above, members of the public are visiting the branches of the banks across India in unprecedented large scales, either to exchange or to deposit the specified banks notes. It is reported that shareholders of the bank are finding it difficult to submit their applications for the rights issue on account of the same," Karnataka Bank said in the regulatory filing. 

The bank said considering the inconvenience of the bank's shareholders and due to their inability to submit their composite application form in time, the "Internal Capital Adequacy Assessment Committee vide circular resolution dated November 18, 2016 decided to extend the rights issue by an additional seven days and accordingly the rights issue will close for subscription on November 28 in place of November 21 as disclosed in the Letter of Offer," it added. 

The bank's board of directors have decided to issue one share for every two shares held on record date of Rs 70 per share, which includes a premium of Rs 60 per share. The Karnataka Bank stock closed at Rs 112.30 on Friday, down 0.66 percent since its previous close on BSE.