LVB to raise capital to Rs 3,000cr

Karur-based Lakshmi Vilas Bank is planning to increase its capital to Rs 3,000 crore by 2014-15 from the current Rs 500 crore. This would help the bank achieve its target of Rs 75,000-100,000 crore total business by 2015, said bank’s managing director VS Reddy.

The bank would raise the capital through follow-on, rights, tier-II bonds and also from the overseas markets. It plans to enter international markets after two years starting with the West Asia, UK and later the US.

Speaking to Business Standard after announcing the quarterly results in Chennai recently, Reddy said they expect to close the current fiscal with a total business of Rs 13,000 crore.

LVB has set a target of 35 per cent growth y-on-y till 2014-15. To achieve this, it would open more branches, upgrade technology and increase the manpower.

Reddy said the bank would have 600-700 branches by 2015, from 251 now. It has received licence from the RBI to open 23 branches during the current year. Similarly, it would raise the headcount by 3,000 employees by 2015. Its present employee strength stands at 2,300.

For the quarter ended Dec 31, 2008, the bank reported a 400 per cent rise in net profit to Rs 19 crore, as against Rs 3 crore in the year ago period.