The total networth, which is Rs 61 crore currently, is estimated to reach Rs 597 crore by Mrach 31, 2005. Sources, however, said the bank is yet to complete discussions on the report. The immediate issue to be attended to is to comply with the RBI stipulation of raising the capital base to Rs 100 crore by the turn of the current fiscal, sources added. PwC report has fixed the share price for the first issue at Rs 75 and Rs 142 for the second issue, based on the average of book value and prevailing market price.

Post-issues, NBLs capital adequacy will go upto 18 per cent 15.6 per cent respectively as against 9.4 per cent at present. By the end of the fifth year, the bank is expected to record a business volume of Rs 9773 crore and a net profit of Rs 127 crore as compared to last years Rs 2382 crore and Rs 14.6 crore.

The five-year business plan assumes an average growth of 33 per cent in deposits and 32 per cent in advances. Among the key highlights of the final proposals of PwC include: building up core competencies in traders and small business; induction of an executive director or alternately an additional general manager; one-year frieze on fresh recruitment (for the scale I and below); setting up a credit management organization at the head office/ regional office levels; building up adequate IT infrastructure and manpower before dealing with new products like ATMs, internet banking, call centres and credit cards; formation of new treasury department based in Mumbai and developing specialised skills in foreign exchange, recovery and treasury operations. PwC has proposed drastic measures to improve human resources base in the bank.