Lakshmi Vilas Bank announced through an official statement that it has recorded an operating loss of Rs. 5.66 crore, net loss of Rs. 396.99 crore and the total business of the bank was at Rs. 37,595 crores during the financial quarter that ended on September 30, 2020.
Despite logistical challenges arising due to COVID-19 situation, the bank made significant progress with Clix group for the proposed amalgamation of Clix Capital Service Pvt Ltd and Clix Finance India Pvt Ltd into the bank. There were minor incremental due diligence requested by Clix Group, which was completed this week. Now, the respective sides are in the process of a workable and mutually acceptable framework.
Further, the bank’s board has approved the issue by equity shares upto Rs 500 crore by way of Rights issue and ICICI Securities is appointed as the merchant Banker for the issue.
On the positive side, during the quarter, the bank launched ‘DigiGo’, a self-onboarding online instant account opening facility. This is a limited liability account in which the customer needs to submit the relevant KYC documents within a year to convert to a full KYC account.
The Bank continues to enforce cost reduction measures both of direct and indirect costs. Further the Bank focusses on capital free loans like Gold Loans, Govt Guaranteed loans to optimise profitability without straining capital funds.