Lakshmi Vilas Bank To Continue Fundraising Drive After Merger With Indiabulls Fails
The Lakshmi Vilas Bank Ltd. will continue with its fundraising drive, the private sector lender said Thursday, a day after the Reserve Bank of India rejected its proposal to merge with Indiabulls Housing Finance Ltd.
Wednesday’s decision by the RBI brings to an end to the uncertainty surrounding the Indiabulls-Lakshmi Vilas Bank merger, the lender said in an exchange filing. It will, however, continue to raise capital as per the permitted modes in compliance with all applicable acts and regulations.
"We are committed towards growth and creating value to our stakeholders," it said.
Noting that it began its journey in 1926, Lakshmi Vilas Bank said it has witnessed a lot of business cycles "punctuated with booms and recession".
"LVB continues to stand resilient and stronger as always. The bank was an early adopter of technology during 1980s towards providing prompt customer service," it said.
The South India-focused lender expanded beyond Tamil Nadu in 1974 and at present has 571 branches and 1,045 ATMs across the country. Its deposit book was close to Rs 26,000 crore.
On Thursday, Lakshmi Vilas Bank shares fell 5 percent to Rs 25.65 apiece on the BSE while the benchmark Sensex lost 0.78 percent to end the day at 37,880.40 points.