The Lakshmi Vilas Bank Ltd. (LVB) has successfully raised over Rs. 2.5bn in its private placement issue of Unsecured Redeemable Non-Convertible Subordinated Bonds. The issue was oversubscribed and closed on February 03, 2012. A. K. Capital Services Ltd. was the Sole Arranger to the issue.
The size of the issue was Rs. 2.5bn including option to retain over subscription. The bonds with combination of tenures of 6 years and 10 years offered a coupon rate of 11.40%. The issue of bonds was made for augmenting Tier-II capital for improving the Capital Adequacy Ratio and enhancing the long-term resources of the Bank.
LVB has a rich track record of 85 years of time tested presence and growth. The Bank has a wide network of 277 branches spread across 15 states and 1 Union territory, supported by 502 ATMs. LVB announced its quarterly results for the quarter ended 31st December 2011 on the 2nd February 2012, reflecting an Y-on-Y growth of 34% on total business which stood at Rs 226250mn as at 31st December 2011. Total deposits grew to Rs 132810mn (33.43%), with retail deposit growth of 45.93% and gross credit at Rs 9344 Cr grew Y-o-Y by 35%. Net profit for the quarter 31st December 2011 was up 10.35% at Rs 283.5mn and for the 9 months was up 11.2% at Rs 820.6mn.
The Bank has successfully completed the first phase of Financial Inclusion covering 50 villages in TN, responding to the need for increasing banking penetration. The bank has been steadily increasing the technology-led services and many specialised services like Door step banking, NPS and E-Tax payment are being offered to clients. The Bank won the prestigious Banking Technology Award - Best Bank Award for Electronic Payments Systems among small banks for the year 2010-11 - of the IDRBT.