Lakshmi Vilas Bank Board To Meet On April 12 To Approve Fund-raising Plans

The board of private sector lender Lakshmi Vilas Bank will meet on April 12 to approve fund-raising plans as well as to prop up its Additional Tier I capital.

“The board of directors of the bank is scheduled to meet on April 12 to approve the issuance and allotment of equity shares, including by way of a preferential allotment,” the lender said in a regulatory filing.

It is also considering raising capital through issuance and allotment of Basel III-compliant Additional Tier-1 debt instruments in the nature of bonds, the bank further said.

The Tamil Nadu-based lender had, last week, announced plans to merge with Indiabulls Housing Finance through a share swap deal, in a move that is widely perceived to help improve its financial health.

In March, the lender had also raised ₹459.59 crore through a QIP to bolster its capital adequacy.

On Tuesday, the bank’s scrip fell 4.98 per cent to close at ₹92.50 apiece on the BSE, erasing gains made on Monday following news of the proposed merger.