Besides Clix Group, bank's advisors are looking for a few large marquee long- term investors as well in mutual consultation, S Sundar, MD & CEO, was quoted as saying in a statement.
Capital-strapped Lakshmi Vilas Bank (LVB) on Friday said if the proposed amalgamation of Clix Capital Service and Clix Finance into the bank fructify, the entire shareholders’ fund of Clix Capital of close to Rs 1,900 crore and total assets of about Rs 4,600 crore will get amalgamated into South–based private sector lender. The due diligence process for amalgamation is currently underway.
LVB claimed as per current quick estimates of advisors, after amalgamation of Clix Capital, the Tier-I capital ratio of bank might reach to a reasonable threshold level stipulated under extant regulatory norms based on the present level of assets and capital.
Besides Clix Group, bank’s advisors are looking for a few large marquee long- term investors as well in mutual consultation, S Sundar, MD & CEO, was quoted as saying in a statement.
Bank’s auditor P Chandrasekar LLP pointed out that the bank has been incurring losses for the past 10 quarters and the RBI had initiated the PCA in September 2019.
LVB posts profit after several quarters of losses
LVB on Friday reported a net profit of Rs 92.86 crore for the fourth quarter of FY20, against the net loss of Rs 264.43 crore in the year-ago period. The bank has reported profit after several quarters of losses, mainly on account of reversal of provisions for wage hike and deferred taxes.
LVB had recorded a net loss of Rs 334.47 crore in the December quarter.
Total income stood at Rs 629.75 crore in Q4, compared with Rs 739.72 crore, registering a decline of 14.86%.