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