INSUBCONTINENT EXCLUSIVE:
aimed at improving Lakshmi Vikas Bank's performance and "will not have any adverse impact on the normal day-to-day operations", the
Chennai-based lender said in a regulatory filing early on Saturday
The RBI action on the bank comes a day after the Economic Offences Wing of Delhi Police opened a probe into Lakshmi Vilas Bank directors
following allegations of misappropriation of funds.Lakshmi Vilas Bank said the move by the regulator is on account of factors such as high
inspection of Lakshmi Vilas Bank on March 31.The Reserve Bank of India has advised Lakshmi Vilas Bank on the restrictions put in place and
the actions to be taken, and the private sector lender will report the progress of the compliance measures on a monthly basis, according to
"The bank has taken note of for necessary compliance with progress to be reported on a monthly basis to RBI," Lakshmi Vilas Bank said.The
police investigation came after financial services company Religare Finvest accused Lakshmi Vilas of misappropriating Rs 790 crore it had
kept with the bank as a fixed deposit.The directors face charges of cheating, breach of trust, misappropriation and conspiracy, Lakshmi
Vilas said in a statement on Thursday, adding that it was considering taking "appropriate legal measures".On Friday, Lakshmi Vilas Bank said
it is "committed to cooperate with the investigating agencies and regulatory authorities apparently in order to bring out the malicious
attempts of RFL to mislead the public to cover up massive fraud indulged by their own promoters/ employees/ group companies".India's
banking sector has been roiled by defaults from housing finance companies and the RBI has taken charge of a leading co-operative lender this
The country's banks are grappling with roughly $150 billion in stressed assets while its non-banking financial companies (NBFCs) are
struggling with liquidity pressures.Lakshmi Vilas Bank had said in April that it would merge its operations with housing finance firm
Indiabulls Housing Finance in a share-swap deal.On Friday, Lakshmi Vilas Bank shares closed 4.94 per cent lower at Rs
Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
