INSUBCONTINENT EXCLUSIVE:
advised the bank on restrictions put in place and the actions to be taken
The bank has taken note of for necessary compliance with progress to be reported on a monthly basis to RBI," Lakshmi Vilas Bank said in a
regulatory filing to the BSE on Saturday.The private sector bank said the RBI's crackdown was on account high net non-performing assets,
insufficient capital to risk-weighted assets ratio (CRAR), common equity Tier 1 (CET1) and negative return on assets (RoA) for two
consecutive years, and high leverage based on on-site inspection under the risk-based supervision carried out for the year ended March 31.(
RBI raises withdrawal limit For PMC Bank account holders to Rs
10,000)"The prompt corrective action is aimed at improving the performance of the bank and will not have any adverse impact on the normal
Bank shares closed 4.94 per cent lower at Rs 36.55 apiece on the BSE after the bank said that Economic Offences Wing of Delhi Police had
registered a first information report (FIR) against its directors.The FIR was registered under complaint for offences of cheating, criminal
breach of trust by banker, criminal misappropriation and criminal conspiracy under the Indian Penal Code 1860."The FIR is based on a
complaint filed by Religare Finvest Ltd (RFL) pertaining to adjustment of their deposits to the dues of RHC Holding Pvt Ltd and Ranchem Pvt
The same was received at bank's end on September 25," Lakshmi Vilas Bank said, adding that it is considering appropriate legal measures to
counter the same.Religare Finvest has accused Lakshmi Vilas Bank of misappropriating Rs 790 crore it kept with the bank as a fixed
deposit.Established in 1926, Lakshmi Vilas Bank is one of the old private sector lenders based in Tamil Nadu
As of March 31, its net advances stood at Rs 20,103 crore and deposits at Rs 29,279 crore.The bank's board of directors has approved the
scheme of amalgamation to effect its merger with lndiabulls Housing Finance Ltd and its wholly-owned subsidiary lndiabulls Commercial Credit
The scheme is subject to regulatory and shareholders' approval.Meanwhile, the Delhi High Court on Friday sought the response of the Centre
and the RBI on a plea seeking a Special Investigation Team (SIT) probe into the alleged illegalities, siphoning off funds and violations
committed by the promoters of Indiabulls Housing Finance.Lakshmi Vilas Bank's rating has been constrained by its moderate size, regional
nature of operations, weak asset quality parameters and weak capitalisation levels.Get Breaking news, live coverage, and Latest News from
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