Crisis-ridden Lakshmi Vilas Bank’s capital requirement may have spiked post-Covid

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LVB itself is under the RBI’s prompt corrective action (PCA) which means it has faced restrictions on lending, branch expansion and dividend pay outs to conserve capital.

Synopsis

The debt-laden Chennai based lender may need as much as Rs 2,500 crore in fresh funds to survive and grow, higher than the Rs 1500 crore assesment done earlier this year as the hole in the bank’s balance is bigger than expected.

Higher provisioning requirements due to the economic downturn caused by the Covid-19 pandemic, unmet regulatory requirements and capital needed for growth means that Lakshmi Vilas Bank (LVB) needs much more money to stay afloat than previously thought.The debt-laden Chennai based lender may need as much as Rs 2,500 crore in fresh funds to survive and grow, higher than the Rs 1,500 crore assesment done earlier this year as the hole in the bank’s

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