View: The RBI needs to cut the Gordian knot that threatens financial stability in India

At the heart of Reserve Bank of India’s (RBI) discussion paper, ‘ Revised Regulatory Framework for NBFCs’, released last Friday, is its concern that the problems of non-banking financial companies (NBFCs) should not result in systemic risk and endanger financial stability. Not only because financial instability can threaten economic stability (as seen after the Lehman … Read more

Write-off of Lakshmi Vilas Bank’s debt to sting small lenders

By Divya Patil India’s smaller banks will likely face higher funding costs and reduced investor appetite for their bonds just as non-performing loans spread, after the central bank moved to write off debt of an ailing lender. The Reserve Bank of India on late Thursday said 3.18 billion rupees ($43 million) of Tier 2 bonds … Read more

Snowman Logistics, LVB, SpiceJet, Gland Pharma among top names that buzzed last week

Gland Pharma made a strong debut on bourses during the week gone by, while aviation major SpiceJet and telecom player Vodafone Idea advanced up to 32 per cent. On the other hand, private lender Lakshmi Vilas Bank cracked more than 40 per cent after the government placed the bank under a one-month moratorium. Overall, heavy … Read more

LVB board to meet on October 15 to consider rights issue

NEW DELHI: Cash-strapped Lakshmi Vilas Bank (LVB) on Monday said its board will meet later this week to consider issuance of shares on rights basis to existing shareholders. “A meeting of the board will be held Thursday, October 15, 2020 to consider and approve the issue of securities of the bank to existing shareholders of … Read more

Lakshmi Vilas Bank directors lacked accountability: Advisory firm

KOLKATA: Before shareholders of Lakshmi Vilas Bank threw out seven out of 10 directors, the Institutional Investor Advisory Services (IiAS) said these directors lacked accountability even as the bank’s financial parameters deteriorated over the last couple of years. “Many of these directors have rotated on-and-off. We believe that a part of the accountability for the … Read more

Lakshmi Vilas Bank “substantially completes” due diligence for proposed merger with Clix Group

Kolkata: Lakshmi Vilas Bank said it “substantially completed” the due diligence for its proposed merger with the Clix Group, even as the extended deadline for the completion of the process ended Tuesday, and said that the two parties would continue to discuss the future course of action. This leaves doubts on whether the fate of … Read more

Delhi HC notice to Shivinder Singh on RFL plea challenging his bail in bank fraud

New Delhi: The Delhi High Court on Thursday issued notice to Shivinder Mohan Singh on a petition by Religare Finvest Ltd (RFL) challenging his bail granted by a local Court last week. RFL was represented by Advocate Sandeep Das in the Delhi High Court. Both Shivinder and his elder brother Malvinder Mohan Singh, erstwhile promoters … Read more

Lakshmi Vilas Bank climbs 5% on fundraising plan, foreign shareholding limit

NEW DELHI: Shares of Lakshmi Vilas Bank (LVB) rose nearly 5 per cent in Monday’s trade after the bank said it would raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding limit to up to 74 per cent. The bank said it would seek approval for the proposals from its … Read more

Deadline for proposed Lakshmi Vilas Bank-Clix Capital merger due diligence extended till Sept 14

KOLKATA: Lakshmi Vilas Bank and non-bank lender Clix Capital, who have been exploring merger, have mutually decided to extend the deadline for completing the mutual due diligence till September 14. The previous deadline is expiring on Friday. Auditors of the bank, meanwhile, have cast doubts on whether the bank can continue as a going concern … Read more