Clicks Group Crisis-stricken Lakshmi Vilas BankIs preparing to purchase. The process has begun. According to a report, Clicks Group has taken a non-binding offer. Lakshmi Vilas Bank said it has received an indicative non-binding offer from Clicks Group.
According to a report, a series of talks between the two sides may begin after that. This has raised hopes that Lakshmi Vilas Bank’s condition will improve soon. The bank also needs Rs 2,500 crore. Out of which Rs 500-700 crore is required for the business area. Due to negative Tier-1 capital, the bank is offering only gold loans and government-guaranteed MSME loans. According to sources, talks between the two sides could begin after that. This has raised hopes that Lakshmi Bank’s position will improve.
What will happen to customers now
The bank said customers have been assured that the current crisis will not affect their bank deposits. The bank said the assets of depositors, bondholders, account holders and creditors are fully secured with the LCR having a liquidity security ratio of 262 per cent. The LCR set by the RBI is 100 per cent. While the bank has two and a half times the reserve amount. The management committee of the bank will take any decision. It will be made public.
In a filing to the stock exchange, the bank said it is currently in the process of consulting and analyzing with Clicks Capital Services, Clicks Finance India, Clicks Housing Finance. The bank is pleased to announce that the group’s indicative non-binding offer has been introduced.
In the past month, the bank’s shareholders have shown the way out of the board to six directors, including the bank’s CEO and two promoter directors. The bank has since formed a new team. Which is furthering the merger talks.
The new committee of directors has received approval from the Reserve Bank of India. However, no new CEO has been appointed yet. The committee may also raise rights issues worth Rs 500-700 crore. The merger co-committee has three board members to raise funds. They include former Andhra Bank MD Satish Kumar Kalra, promoter director G Sudhakar Gupta and Mita Makhan, who has worked in many private banks.