Lakshmi Vilas Bank exploring other avenues to raise capital; stock falls

Bank officials said with the fall in share price and valuation, there could be interest from other investors

A day after the Reserve Bank of India's (RBI) refusal for the proposed amalgamation of Indiabulls Housing Finance (IBHFL) and its subsidiary with Lakshmi Vilas Bank (LVB), the latter said it would be exploring other avenues for getting investment.

Earlier, it had got shareholder approval to raise up to Rs l,000 crore through equity and Rs 500 crore by way of Tier-l and Tier-II bonds.
 

"This brings an end to the recent uncertainity and the bank will continue to work towards raising capital as per the permitted modes," said LVB.

The bank’s chairman did not respond to calls or messages. The then