MoneyWorks4Me

Lakshmi Vilas Bank eyes ailing Citi NBFC

23 Jul 2010 Evaluate

Lakshmi Vilas Bank (LVB) is in talks with Citigroup to acquire CitiFinancial Consumer Finance India, the struggling non-banking finance company which gives retail loans to low-income borrowers.

 

LVB has hired investment bank JM Financial to carry out due diligence of CitiFinancial, which has a `9,000-crore balance sheet, 116 branches and close to 1,600 employees. The LVB board recently cleared a proposal to float a wholly-owned housing finance subsidiary which intends to acquire CitiFinancial.

 

For LVB, an entity like CitiFinancial would give it access to 58 locations and help the bank, which currently focuses on Tamil Nadu and other southern states, reach out to other states. LVB shored up its top management by inducting two senior personnel from ICICI Bank and Citibank. The bank also plans to beef up its presence by adding 35 branches to its existing network of 271 by end-FY11.crackcrack
Peers
Company Name CMP
HDFC Bank 708.85
ICICI Bank 1384.50
Axis Bank 1236.00
Kotak Mahindra Bank 439.25
Indusind Bank 867.25
View more..