15 October (Language) The cash-strapped Lakshmi Vilas Bank (LVB) has been approved by its board of directors to raise Rs 500 crore from a rights issue. In a communication sent to the stock exchanges, LVB said that in a meeting of its board of directors held on October 15, it approved to raise up to Rs 500 crore by issuing and allocating equity shares or other similar securities through a rights issue. The private sector bank reported last week that it had received a non-binding offer for the merger from the non-banking financial company Click Group.
The Chennai-based old generation bank has been looking for investors and capital for a long time. The bank suffered a setback in late September when its shareholders voted in favor of the exclusion of the seven directors on the board. These include Chief Executive Officer (CEO) S Sundar and promoters KR Pradip and N Cypress.