Lakshmi Vilas Bank Ltd(Merged) Company Summary

Lakshmi Vilas Bank Ltd (LVBL) was incorporated in the year November 03, 1926. It came into existence to meet the growing demands of agriculture, small scale-industries and other priority sectors. To make itself a technology-oriented bank, LVB has appointed M/s KPMG as IT consultant, to offer consultancy services and also to prepare IT strategy for the bank. The Bank operates into four business segments comprising of Treasury, Corporate and Wholesale Banking, Retail Banking and Other Banking Operations. The Banks network spread as on 31st March 2019 stood at 569 branches with 561 General Banking branches, 7 Commercial Banking Branches, 1 Satellite branch and 5 extension counters with its presence spread across 16 States and 3 Union Territory of Puducherry. The Bank has added 28 new ATMs during the Fiscal 2018-19 and the ATM network stood at 1048 which includes 600 Offsite ATMs.To improve customer services, it computerised all main branches and administrative offices in all the metros and urban/semi-urban areas. The bank has actively participated in priority sector lendings (PSLs), particularly under various government sponsored programmes for the upliftment and economic development of the rural poor. The bank also opened extension counter at EID Parry (I) Ltd., Pugalur Zion Matriculation Higher Secondary School, Selliyur and G S Pillai Engineering College, Nagapattinam. The bank has made network to all the branches to provide on-line connectivity. It has made process of converting its DBMS platform to client-server environment to enable anywhere banking at a national level. During December 2002 the bank has obtained Iicense from IRDA for marketing life insurance products of M/s AVIVA Life Insurance Company (formerly Dabur CGU Life Insurance Pvt. Ltd). The bank will sell the insurance products initially in Andhra Pradesh and Tamil Nadu through its 104 branches. It is also planning to enter into Non-life insurance segment through Corporate Agency arrangement. The total numbers of branches as of March 2004 were 224 and out of this one branch were converted into satellite branch.During FY 2015, Lakshmi Vilas Bank launched LVB Crown Services, a bespoke suite of products and services, designed exclusively for high net worth individuals. The Bank has envisioned a premium value proposition, with customers being mapped to either CROWN Relationship Managers or Branch Managers. This would ensure a responsive, superior service experience for customers. Also, the LVB CROWN Savings Bank account offers Rs 25 lacs Personal Accident Cover, 25% discount on locker facilities, free RTGS, Platinum VISA International Debit card with higher limits on POS and ATM transactions, among a host of other benefits. The Bank is also creating LVB CROWN lounges for CROWN customers, in select branches. The first LVB CROWN lounge was launched in Cantonment Branch, Bengaluru, in February15, and more are slated for launch in the current financial year. The Bank would bring in more products and services as part of LVB CROWN, catering to the varied needs of its esteemed customers.During the fiscal 2015-16, the Bank added 60 new branches to its network across the country and as on 31st March 2016, the Bank had a network of 459 branches, 1 satellite branch and 7 extension counters, spread across 16 states and the Union Territory of Pondicherry.During the year 2017, 1,19,85,138 equity shares were allotted to Qualified Institutional Buyers (QIBs) in line with Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. These shares were issued at a premium of Rs 130 to the face value of Rs 10.During the year, the Bank had issued equity shares to Qualified Institutional Buyers through Qualified Institutional Placement on 3 January1 2017. The issue was done in order to enhance the capital adequacy ratio in line with the RBI norms and the proceeds of the issue were used primarily to enhance the Banks Capital Adequacy Ratio and to increase the capacity to lend and for general corporate purposes subject to compliance of applicable laws. There was no variation prompting disclosure under Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.During the fiscal 2016-17, the Bank added 21 new branches to its network across the country and as on 31st March 2017, the Bank had a network of 480 branches, 1 satellite branch and 7 extension counters, spread across 16 states and the union territory of Puducherry. The Bank also has ATM network of 958 (362 Onsite & 596 Offsite), in vital / major locations for better service to our customers. During the year 2018, 6,39,87,006 equity shares were allotted to eligible shareholders on Rights Basis in line with Chapter II (10) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. These shares were issued at a premium of Rs112/-to the face value of Rs10/-.During the year 2019, 6,38,31,328 equity shares were allotted to Qualified Institutional Buyers (QIB) in line with Chapter VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Section 42 of the Companies Act, 2013), as amended. The Banks QIP issue for the Qualified Institutional Buyers was opened on 07 March 2019 and closed on 15 March 2019. The Bank has allotted 6,38,31,328 equity shares (face value of Rs 10 and premium of Rs 62 per equity share) for an aggregate amount of Rs 459.59 crores to eligible investors on 16 March 2019.The Bank had allotted 1,68,00,000 Equity Shares (face value of Rs 10 and premium of Rs 112 per equity share) for an aggregate amount of Rs 188.16 crores on 04 July 2019 to M/s. Indiabulls Housing Finance Limited under Preferential issue as per Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 with approval of the shareholders through an Extra-ordinary General Meeting held on 20th May 2019.The Board at its meeting held on April 5, 2019 had approved the scheme of amalgamation of The Lakshmi Vilas Bank Limited (LVB) (Transferor Company) with Indiabulls Housing Finance Limited (IHFL) (Transferee Company). In furtherance to same, based on mutual discussion of the management of LVB and IHFL, respectively, the Board at its meeting held on May 3, 2019 had considered and approved amendments to effect merger of IHFL (Transferor Company 1) and its wholly owned subsidiary, Indiabulls Commercial Credit Ltd., (ICCL) (Transferor Company 2) into and with LVB (Transferee Company) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 as amended, Companies (Compromises, Arrangements and Amalgamations) Rules 2016, and other rules and regulations framed thereunder. The Scheme is subject to receipt of approval from Reserve Bank of India, other Regulatory approvals and all other applicable compliances. Bank has already filed applications with Reserve Bank of India and both Stock Exchanges, which are under consideration by the respective Regulators. Further, on joint application filed by said three entities with Competition Commission of India (CCI) on May 10, 2019, CCI has accorded its approval by Order under Section 31(1) of the Competition Act, 2002 dated June 20, 2019.