LV Bank board okays ₹500-crore rights issue

Our Bureau Mumbai | Updated on October 15, 2020

The board of Lakshmi Vilas Bank on Thursday approved a proposal to raise ₹500 crore through a rights issue, the lender said in a regulatory filing.

The bank’s board and shareholders had earlier approved a proposal to raise ₹1,000 crore through issuance of equity shares or other eligible security, including GDRs or FCCBs.

The cash-strapped lender has been working to improve its capital buffers and has been talking to investors for a potential merger. The bank on October 8 said it had received an indicative, non-binding offer from Clix Group.

The bank is under Prompt Corrective Action norms of the RBI and it reported a net loss of ₹112.28 crore in the first quarter this fiscal.

Published on October 15, 2020

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