Lakshmi Vilas Bank - Turnaround Story


(devarshi84) #21

Again fell 20pct today after they declared the banks exposure to Il&fs. They were honest atleast.

Last three quarters have been a rout so the only hope is if they can get new owners.

I don’t know why these banks of the South are not contemplating a merger.


(devarshi84) #22

Economic times has reported that LVB fund raising plan has hit a rough patch as investors don’t want to invest at a time when NPA problems are all around.

I trust Mr. Parthasarthi Mukherjee’s vision to get the bank out of chaos but that may be a while. Need to see how they have handled current qtr. If they have reduced NPA’s and provided for in previous 2 qtrs, I expect current qtr to have GNPA below at least 6-7 pct.

Disc: invested before the NPA issues spiralled out of bounds.


(Vivek) #23

Disaster set of numbers !!
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=8CCC1C79-E840-454D-BD51-9328F3360E5E

The markets very well knew the numbers ahead of announcements .


(devarshi84) #24

NPA numbers keep piling up for this bank.All other banks had a qtr or two to clear up their NPA and are back on track posting profits.

I see bloodbath everywhere these days. DHFL, YeS, DHFL, ILfS and many others. The only short term solution is to get a strong investor who can pump enough capital and get LVB back in the race.


(devarshi84) #25

The much awaited stake sale seems to have been approved. The terms will decide further course of action.


(Vivek) #26

A meeting of the Board of Directors of the Bank would be held on Friday, March 8, 2019,
inter-olio, to consider and approve the raising of funds by way of issue of equity shares
of the Bank on preferential basis and issuance of unsecured, subordinated, fully paidup, Non-Convertible, Non-cumulative, BASEL Ill Compliant, Perpetual Debt Instruments
in the nature of debentures for inclusion in Additional Tier I Capital of the Bank on
private placement basis, to certain investor(s), in accordance with the provisions of
the Companies Act, 2013, as amended, and the rules and regulations framed by the
Securities and Exchange Board of India and other applicable laws.


(Vivek) #27

(Vivek) #28

QIP opened at Rs 66/-


(Vivek) #29

460 Crores has been raised at Rs 72 per share


(devarshi84) #30

459 Cr against the expected 200-250cr is good news. The problem of Escalating NPA still remains. The only bank at the moment to have such high NPA.