"We will go for a IPO in 2001-02 if the conditions are good," Lord Krishna Bank chairman J Kasiviswanathan said. Sources said the bank will raise about Rs 50 cr to hike its networth to above Rs 100 cr from the present Rs 50.26 cr in line with RBI guidelines.

"The bank is also negotiating with a foreign bank for offering upto 20 % stake as stipulated by RBI," he said but refused to give details. The foreign bank would assist us in upgrading our technology and operating systems, he added. The proceeds from the IPO and 20% sell-off to the foreign bank would part finance the bank's Rs 100 cr expansion and modernisation plan. he said "we would become a `National bank' by adding 14 branches to the existing 75. " The bank targets a business of Rs 10,000 cr by 2004, and a forex business of Rs 1,000 cr by March 2002, headded. The bank is also talking to major software companies like Infosys Tech for online banking, he said. The Pai Group recently sold 42% of their stake at an undisclosed premium to the AK Puri and family. "Our stake has gone up from 29% to 69%," A K Puri said.