Lakshmi Vilas Bank on Monday said it has been trying to raise capital for more than a year and expects the funding from Indiabulls Housing Finance later in April.
“The bank has been trying for more than a year to raise capital. We have looked at various options. We have involved a number of investment bankers at this. There was a number of private equity investors that we were engaged with. In the end, time was running out for us as far as capital raising is concerned and then this particular transaction has been materialised," said Parthasarathi Mukherjee, MD and CEO, Lakshmi Vilas Bank.
Earlier this month, the board of Tamil Nadu-based Lakshmi Vilas Bank has Friday approved the merger with Indiabulls Housing Finance.
The Reserve Bank of India is yet to approve the Lakshmi Vilas Bank-IHFL merger. In a statement, the RBI had noted that it would examine the proposal as per extant regulatory guidelines and directions.