Crisis-ridden Lakshmi Vilas Bank's capital requirement may have spiked post-Covid
LVB itself is under the RBI's prompt corrective action (PCA) which means it has faced restrictions on lending, branch expansion and dividend pay outs to conserve capital.
The debt-laden Chennai based lender may need as much as Rs 2,500 crore in fresh funds to survive and grow, higher than the Rs 1500 crore assesment done earlier this year as the hole in the bank's balance is bigger than expected.
MUMBAI: Lakshmi Vilas Bank (LVB) needs much more money to stay afloat than previously estimated because of higher provisioning due to the Covid-induced economic meltdown, unmet regulatory milestones, and funds needed to underpin growth in a crowded financing market.The stressed Chennai-based lender may need as much as Rs 2,500 crore in fresh funds to survive and grow, higher than the earlier estimate of Rs 1,500 crore. The Covid 19 pandemic has