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IS LAKSHMI VILLAS BANK GOING TO MERGE IN COMING MONTHS ?

Lakshmi Vilas Bank its board will meet in the not so distant future to consider issuance of offers on rights premise to existing investors.

A gathering of the board will be held Thursday, October 15, 2020 to consider and support the issue of protections of the bank to existing investors of the bank on rights issue.

According to a goal passed by its board and investors in August and September separately, the bank has got endorsement for raising assets by method of value shares and different instruments through different modes, including further open offer, rights issue or qualified foundations situation for a total measure of up to Rs 1,000 crore.

A week ago, the moneylender said it has gotten a non-restricting proposal from Aion-supported non-banking fund organization Clix bunch for a merger.

The Chennai-based private area bank was shocked on September 25 when its investors removed seven chiefs on its board, including CEO S Sundar and advertisers K R Pradeep and N Saiprasad.

On the off chance that the merger with Clix emerges, the networth of the bank will dramatically increase to Rs 3,100 crore from the current Rs 1,200 crore. Clix Capital has a networth of Rs 1,900 crore that will end up being the networth of the bank after the arrangement.

The moneylender has been hounded by high awful credits and the chaperon administrative checks since 2019. In September, its board had affirmed raising support plans for Rs 1,500 crore and furthermore to increment unfamiliar shareholding to up to 74 percent from 12.35 percent.

The bank had posted a total deficit of Rs 112.28 crore in the June 2020 quarter.

Just about a fourth of its advances are flop resources now, with net non-performing resources of 25.40 percent as of June-end, against 17.30 percent a year prior.

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