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Lakshmi Vilas Bank in talks with NBFCs to raise capital, says report

Lakshmi Vilas Bank in talks with NBFCs to raise capital, says report

Lakshmi Vilas Bank in talks with NBFCs to raise capital, says report
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By CNBC-TV18 Mar 7, 2019 11:20:54 AM IST (Published)

Lakshmi Vilas Bank (LVB) is in talks with two non-banking financial companies (NBFCs), including Indiabulls Housing Finance, to raise growth capital, reported The Economic Times

Lakshmi Vilas Bank (LVB) is in talks with two non-banking financial companies (NBFCs), including Indiabulls Housing Finance, to raise growth capital, reported The Economic Times, citing people close to the development. The bank is also considering a merger identical to the one of IDFC Bank and Capital First, the report added.

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The development comes as the lender is struggling with NPAs and is looking to address the paucity of growth capital by joining hands with an NBFC with high growth capital. The report noted that the deal could fetch an NBFC a long-term solution to asset liability management and lower borrowing costs.
Lakshmi Vilas Bank has the current market capitalisation of Rs 2,082 crore and cash and equivalents of over Rs 21,000 crore, according to the report.
In response to the report, Parthasarthi Mukherjee, managing director of Lakshmi Vilas Bank, said the bank has engaged with prospective investors to raise capital through various routes. Indiabulls Housing Finance’s spokesperson denied any such development and claimed the news was just a speculation.
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