Business Standard

Clix may seek indemnity from Lakshmi Vilas Bank's dues ahead of deal

It is estimated that about Rs 700 - 900 crore of likely liability may hit the bank

Lakshmi Vilas Bank
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Clix Capital is being advised by EY on the merger, while Deloitte has the mandate from LVB.

Hamsini KarthikSurajeet Das Gupta Mumbai/New Delhi
Clix Capital and its affiliates, in talks with beleaguered Lakshmi Vilas Bank (LVB) for an amalgamation, may seek some regulatory dispensations for the deal to crystalise.

Highly placed sources told Business Standard that Clix Capital might insist that its directors were indemnified from any future claims made against the bank pertaining to its lending operations. 

It is estimated that Rs 700-900 crore worth of liabilities may hit the bank. 

The condition is being insisted upon after two of LVB’s former employees were arrested by the Economic Offences Wing (EOW) on September 25 in connection with the misappropriation of Rs 729 crore of fixed

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First Published: Sep 28 2020 | 7:46 PM IST

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