Shareholders of Lakshmi Vilas Bank divided on merger with Clix group

Some large investors are uncomfortable with Clix group's proposal to take up to 90% stake in the bank

The board of directors at capital-starved Lakshmi Vilas Bank (LVB) are set to meet on Thursday to firm up on a rights issue amounting to up to Rs 1,000 crore. Deliberations on the proposed merger with Clix Group may also be an agenda, according to highly placed sources. 

Clix Group — represented by Clix Capital Services Private Limited, Clix Finance India Private Limited, and Clix Housing Finance Private Limited -- furnished a non-binding merger offer to LVB on October 8.

Thursday’s meeting would be the first time that the board would formally review Clix’s proposal. 

While the finer details of the transaction have