TIRUPPUR:
Lakshmi Vilas Bank (LVB) wishes to inform all its stake holders that Prompt Corrective Action plan is initiated by RBI wef 27/9/19. It is however pertinent to note that Prompt Corrective action plan does not mean Moratorium on the Bank.
We wish to reassure all customers that Bank can transact normal business. There are no restrictions on operations by depositors. Bank can also undertake lending activities to all segments except Corporates and other stressed and high risk sectors.
The Corrective action plan also covers various suggestions/ measures to a) Recover NPAs b) Reduce costs c) boost capital d) downsize RWAs e) improve profitability etc. the Management is in the process of implementing all these measures.
In the recently concluded AGM of the Bank on 27/9/19, Resolutions are passed authorising the Bank to raise further capital upto Rs.1000 crores through equity mode and Rs.500 crores by way of Tier I / Tier II bonds. Bank is exploring various avenues for raising capital to shore up its CRAR. Similarly Bank is putting in place strategies to recover NPAs.
Management of the Bank welcomes the guidance of RBI and shall make all possible efforts to improve the overall financial health of the Bank. LVB seeks the support and patronage of its customers in the times ahead which will among others help the Bank in achieving its objective of nursing the Bank to sound financial health.
