Lakshmi Vilas Bank - Turnaround Story

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.

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.

Disaster set of numbers !!

The markets very well knew the numbers ahead of announcements .

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.

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

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.

QIP opened at Rs 66/-

460 Crores has been raised at Rs 72 per share

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.

Lakshmi Vilas Bank buyer Circuit today.

The circuit was triggered after Bajaj Finance hiked stake in bank by 1.89%

Bajaj Finance stake now stands at 5.90%

Lakshmi Vilas Bank Approves Merger With Indiabulls Housing Finance

:arrow_right: Appointed Date For Scheme To Be Jan 1,2018 Or Other Such Date Mutually Agreed Between Cos
:arrow_right: Lakshmi Vilas Bank-Indiabulls Housing Deal Share Swap Ratio At 1:0.14
:arrow_right: Bank Has Total Assets Of Rs 40,429 Cr, Capital & Reserves Of Rs 2,328 Cr As Of Mar 31, 2018
:arrow_right: Indiabulls Hsg Fin Has Total Assets Of Rs 1,31,903 Cr As On Dec 2018
:arrow_right: Financials Of Amalgamated Entity For 9-Month Completed FY19 Net Worth At Rs 19,472 Cr
:arrow_right: Loan Book Size Of Amalgamated Entity To Be Rs 1.23 Lk Cr

RBI approval will be a challenge for this deal considering the business interests of Indiabulls promoters.

Indiabulls Housing Finance was one of the applicants for a universal banking licence in 2013 when the Reserve Bank of India allowed companies to apply. But it didn’t get one.

The RBI has had an aversion to banks taking on high real estate exposures, and also denied banking licences to entities with a considerably large real estate business.

Bandhan bank and Gruh finance merger approved by both CCI and RBI. This should be seen as a positive for Lakshmi Vilas Bank and Indiabulls Housing merger plans, which again is a merger of a housing finance and a bank.

Only difference is here Bandhan bank (who has banking licence already) acquiring a housing finance company whereas in case by LVB-IBH case, it is housing finance company acquiring a bank. Knowing sensitivity of RBI towards who gets banking licence (getting housing finance company approval from NHB is much easier), approval criteria would be completely different than Bandhan-Gruh merger.

I am sure the directors at IBHFL and LVB are working overtime on ironing out the issues since this is a win win deal for both.

But looking at Capital First-IDFC and BANDHAN-GRUH MERGERS and the stress of NPA and capital adequacy faced by LVB, RBI May act lenient considering keeping stakeholders interests in mind.

Where did u get this information…?
I check on bse website didnt found any such thing on share holding pattern…

Indiabulls Group is selling its Real Estate business to its partners ‘Blackstone’ to accomodate merger with LVB.

Looks like LVB and Indiabulls are really keen for this marriage.