In a bid to boost its capital adequacy levels, Lakshmi Vilas Bank is aiming to mop up Rs 400 crore in core equity from private equity (PE) funds and the promoters over the next six months. In this regard, the private sector lender is in talks with multiple private equity funds for the infusion. The promoters will also participate in the preferential issue to maintain their holding in the bank at 10 per cent.
The small-sized bank’s core capital has depleted to a low 8.7 per cent and since it is planning to expand its loan book by up to 25 per cent, it will need the core capital to keep the adequacy ratio above the mandated levels.
