Tomorrow is the day of October 15 for the private sector Lakshmi Vilas Bank, which is going through a capital crisis. Actually, the proposal to present the rights issue will be considered at the bank board meeting on October 15.

What is rights issue
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Let us tell you that in a rights issue, the company gives its shareholders a chance to buy new shares. Under the rights issue, shareholders have the option to buy additional shares only in a fixed proportion. The company decides this ratio.

Attempt to raise capital
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Actually, Lakshmi Vilas Bank, which is facing economic crisis, is in an effort to raise capital. This is the reason why different methods are being adopted. Recently, the bank had said that it has received a proposal from NBFC Clicks Group for the acquisition.

Seven directors are out
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Recently, Lakshmi Vilas Bank came into the limelight when its shareholders voted on September 25 to show seven directors out of the board of directors. In this, the bank’s CEO S.K. Beautiful and the originator of R. Pradeep and N. Cyprusad included.

RBI team
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After this, the Reserve Bank of India formed a team of three people to run the bank. The central bank made Mita Makhan the chairperson and Shakti Sinha and Satish Kumar Kalra as members.

Bank losses of 836.04 crores
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Please tell that after the NPA increases in September 2019, the bank put the bank under immediate corrective action. The bank incurred a loss of Rs 836.04 crore in the financial year 2019-20 which was Rs 894.09 crore in 2018-19.

 

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