Bank of Rajasthan is planning to expand its branch network to 600 by opening 258 more branches countrywide in the next three years, its chairman P K Tayal said on Monday.

Talking to reporters after opening the 342nd branch in Kolkata, Tayal said the promoters would go through the creeping acquisition route to increase stake to 48 per cent during the current financial year from 43 per cent as on March, 2003.

"We have already increased our stake from as low as 1 per cent in 1999 to 43 per cent. This was possible by subscribing to the entire Rs 90 crore (Rs 900 million) of rights issue in 2001 after shareholders refused to subscribe due to the bank's past records," he said.

He added as per RBI conditions, promoters had to subscribe the entire unsubscribed lot.

"We can increase our stake to the maximum permissible 49 per cent if there is need for it," Tayal said. "The market price of Bank of Rajasthan shares are grossly undervalued considering an EPS of over Rs 13."