Money & Banking

LVB arranges meeting of Tilden Park with the RBI

Mumbai | Updated on February 11, 2020

Lakshmi Vilas Bank, which has been scouting for an investor, on Tuesday said it has arranged a meeting between US-based Tilden Park Capital Management and the Reserve Bank of India.

“...the bank wishes to clarify that Tilden Park Capital Management, a US-based entity, requested for certain regulatory clarifications pertaining to investment in the bank’s shares, and the lender has facilitated a meeting for them directly with the Reserve Bank of India,” it said in a regulatory filing.

It further added that it has not received proposals from any entity for investments. The announcement comes four months after the RBI rejected the proposed merger of troubled Lakshmi Vilas Bank with Indiabulls Housing Finance.

The bank’s board had approved merger with Indiabulls Housing Finance in April last year through a share-swap deal. It was expected to help Indiabulls get access to low-cost stable funds and enable a larger geographical presence for Tamil Nadu-based LVB. In May, it had sought approval from the RBI.

The lender is also under Prompt Corrective Action (PCA) norms of the RBI due to high bad loans and insufficient capital. The board of the bank is set to meet on February 14 to finalise the third quarter results.

On Tuesday, the shares of Lakshmi Vilas Bank closed 9.92 per cent higher at ₹19.95 apiece on the BSE.

Published on February 11, 2020

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