Lakshmi Vilas Bank gets board nod to raise Rs 800 cr via rights issue

Capital Raising Committee to determine the terms and conditions of the issue

Lakshmi Vilas Bank (LVB) is planning to raise funds through rights issue. The bank's Board of Directors' approved on Wednesday the financial entity's proposal to raise funds by way of issue of equity shares on rights basis to existing shareholders of the LVB for an amount of up to Rs 800 crore.
 

The Board has authorised the Capital Raising Committee to determine the terms and conditions of the rights issue, including the rights entitlement ratio, the issue price, issue size, record date, timing of the issue and other related matters- all of which shall be decided in consultation with the lead manager of the rights issue.

The bank is moving away from large corporates and has decided to grow its SME and retail portfolios, where a stronger focus will be lent to gold loans, home loans and SME credit, among others.

At present, the corporate portfolio accounts for around 51 per cent and the bank wanted to bring it down to 47-48 per cent by the end of the current financial year.

Lakshmi Vilas Bank has surpassed the Rs 50,000-crore business mark and has set a target to double it in next three years.