LVB asserts liquidity coverage ratio higher than RBI-mandated level

Lakshmi Vilas Bank on Thursday asserted that its liquidity coverage ratio is more than that prescribed by the RBI and assured its customers that their money is safe.

The bank's statement came in response to news reports that claimed the bank was in "trouble".

"We would like to inform that the said articles are misleading and factually incorrect. Our liquidity coverage ratio is at a comparable level more than what is prescribed by the Regulator and we are in the process of recovering our NPAs and our quantum of NPA has in fact marginally come down in the last quarter (December 2019)," the bank said.

The bank would like to take this opportunity "to assure our customers that their deposits are safe in our bank."

"We also request our customers to ignore any market rumours that are based on unfounded news reports. We will keep you informed about our capital raising plans as per the regulations in force," it said.

Several private sector lenders on Wednesday had issued statements regarding their financial positions and assured customers that their deposits were safe in the wake of Yes Bank crisis post which banking stocks have suffered substantial losses.

LVB shares closed at Rs 15.05 on BSE, up INR 4.88 per cent from the previous close.