Private lender Lakshmi Vilas Bank (LVB) has been in the public eye for all the wrong reasons since last year. The private lender had last year merged with Indiabulls Housing Finance (IBHF), which was later halted by RBI after it put LVB in the PCA (Prompt Corrective Action). Now, the apex bank has proposed DBS Bank India to merge with the lender while it's under moratorium.
The stock fell 20 percent today to Rs 12.45 per share on the NSE. Last year, it plunged 71 percent in 6 months after RBI stopped the merger with IBHF.
The bank has faced some serious flak in terms of earnings, credit rating downgrade, and allegations.
Here’s a detailed timeline of all the vital events related to LVB since 2019 :
April 5, 2019:
Lakshmi Vilas Bank merged into Indiabulls Housing Finance, with a share swap ratio of 0:14:1.
June 21, 2019: The Competition Commission of India approved the proposed merger between IBHF and LVB.
July 29, 2019: BJP leader Subramaniam Swamy sent a letter to Prime Minister Narendra Modi accusing the Indiabulls Group of Rs 1 lakh crore fraud.
August 16, 2019: Moody’s downgraded the company’s long-term corporate family rating to Ba2 from Ba1, while changing its outlook to negative from stable.
August 28, 2019: IBHF reported muted Q1FY20 quarter, with net sales and net profit declining 4.56 percent YoY and 24 percent YoY respectively.
August 28, 2019: RBI places LVB under PCA due to high bad loans and insufficient capital.
August 30, 2019: LVB’s chief executive officer and managing director Parthasarathi Mukherjee resign.
August 31, 2019: ICRA has downgraded IBHF Rs 1.12 trillion long-term debt programme to AA+.
September 10, 2019: CRISIL has downgraded IBHF long-term debt instruments to AA+ from AAA.
September 17, 2019: RBI intensifies its “fit and proper” checks on the management of LVB and IBHF.
September 24, 2019: CARE Ratings revised the long-term ratings of IBHF to AA+ from AAA, the perpetual debt programme rating to AA from AA+, and reaffirmed short-term ratings at A1+.
September 30, 2019: Delhi High Court decided to examine the allegations in a PIL by an NGO of financial irregularities, siphoning of funds, and other violations against the company’s promoters. The stock nosedived 38 percent that day.
October 2, 2019: LVB’s independent director resigns from the bank citing personal reasons.
October 2, 2019: The RBI placed LVB under PCA due to high non-performing assets, insufficient capital, high leverage, and a negative return on assets. The Delhi High Court accepted the PIL against IBHF.
February 6, 2020: DBS, Indostar Capital among suitors for LVB as RBI plays matchmaker.
March 9, 2020: Kotak Mahindra Bank joins race for LVB.
June 15, 2020: LVB receives a preliminary, non-binding letter of intent from Clix Capital Services.
Oct 9, 2020: LVB announces that it had received an indicative non-binding offer from the Clix Group.
Oct 15, 2020: LVB gets the board's approval to raise Rs 500 crore via a rights issue.
Nov 17, 2020: LVB brought under moratorium; RBI proposes merger with DBS Bank India.
(Edited by : Jomy)