LVB to rope in large marquee investors

Private sector lender Lakshmi Vilas Bank (LVB) on Friday said it was talking to investors other than Clix Group.

Last month, LVB signed an LOI with Clix Group for the proposed amalgamation of Clix Capital Service and Clix Finance India into the bank. After the merger, the entire shareholders’ fund of Clix Capital of around ~1,900 crore and assets of around ~4,600 crore, will get amalgamated into the bank.

“In addition to the proposal from Clix Group, the bank’s advisors, we look for few large marquee long term investors as well in mutual consultation,” said the bank’s management. "Therefore, as per current quick estimates of the advisors, after amalgamation of Clix Capital, the CET-1 of the bank might reach a reasonable threshold level stipulated under extant regulatory norms based on the present level of assets and capital,” said the bank.

Net worth of the bank (before DTA) stands at ~996.14 crore. Its Capital Adequacy Ratio (CAR), in line with Basel III guidelines, was at 1.12 per cent as of March 31, 2020, against 3.46 per cent as of December 31, 2019, and 7.72 per cent as of March 31, 2019. LVB on Friday reported a pre-tax loss of ~233.14 crore during the March quarter compared to ~4,99.96 crore during the corresponding period last year. Its total income dropped to ~6,29.75 crore from ~739.72 crore. Gross NPA stood at ~4,233.31 crore as compared to ~3,358.99 crore during the same period last year.

The bank has net worth (before DTA) of ~996 cr. Its CAR, in line with Basel Ill norms, was 1.12% as of March 31, 2020