Lakshmi Vilas Bank to knock other doors for raising capital

Mumbai: A day after the RBI rejected a proposed merger of Indiabulls Housing Finance (IBHF) with it, Lakshmi Vilas Bank on Thursday said this ends an "uncertainty", and it will continue to look at other sources of bolstering capital.

The south-based bank is under the prompt corrective action (PCA) framework of the RBI since last month for low levels of capital buffers and high quantum of dud assets. The RBI, which has a public distaste for allowing companies or promoters from the realty sector into banking had on Wednesday rejected LVB's merger proposal with IBHF.

"This brings an end to recent uncertainty and the bank will continue to work towards raising capital as per the permitted modes in compliance with all applicable Acts and Regulations," the bank's chief financial officer S Sundar said.

He added that the 1926-founded bank has deposits of over Rs 26,000 crore.