Lakshmi Vilas Bank board approves rights issue

The board of Lakshmi Vilas Bank approved raising up to Rs 500 crore through rights issue of equity shares.

The terms of the rights issue will be decided by the board or a duly constituted committee at a later date, Lakshmi Vilas Bank (LVB) said in an exchange filing. The announcement was made during trading hours today, 15 October 2020.

The bank's board had earlier approved raising upto Rs 1000 crore by issuing equity shares through one or more permitted modes including further public offer, rights issue/qualified institutions placement to eligible investors.

LVB is a private sector commercial bank. As on 30 June 2020, the bank had a network of 566 branches, 5 extension counters, 918 ATMs in 19 states and 1 union territory. Tamil Nadu is the dominant contributor of business for the bank.

The bank reported a loss of Rs 112.28 crore in Q1 FY21 as compared to a loss of Rs 237.25 crore recorded in Q1 FY20. Total income during the quarter declined 20.4% Y-o-Y to Rs 538.84 crore.

Shares of Lakshmi Vilas Bank slipped 0.82% to Rs 18.15 on BSE. The scrip has spurted 73.68% from its 52-week low of Rs 10.45 hit on 30 March 2020.

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