NEW DELHI: Beleaguered Lakshmi Vilas Bank on Thursday said its board has approved plans to raise up to Rs 500 crore through a rights issue via issuance of shares on rights basis to existing shareholders.
"(The board) considered and approved, inter-alia, subject to the necessary approvals, the raising of funds by issuance and allotment of equity shares or such other eligible securities of the Bank, for an aggregate amount of up to Rs.500 crore, by way of a rights issue, on such terms (to be decided by the Board or a duly constituted committee of the Board at a later date)," the lender said in a regulatory filing.
According to a resolution passed by its board and shareholders in August and September respectively, the bank has got approval for raising funds by way of equity shares and other instruments through various modes, including further public offer, rights issue or qualified institutions placement for an aggregate amount of up to Rs 1,000 crore.
Last week, the private sector lender said it had received a non-binding offer from Aion-backed non-banking finance firm Clix Group for a merger. The old-generation private sector bank, which has been on the lookout for an investor and capital for long, had to face a blow in late September when its shareholders voted out seven directors of its board, including CEO S Sundar and the promoters.
The bank had posted a net loss of Rs 112.28 crore in the June 2020 quarter. Almost a fourth of its advances are dud assets now, with gross non-performing assets of 25.4 per cent as of June-end, against 17.3 per cent a year ago.