RBI sounds out PNB on acquisition of beleaguered Lakshmi Vilas Bank

Beleaguered bank is currently in merger talks with Clix Capital

The Reserve Bank of India (RBI) is learnt to have told state-owned Punjab National Bank to get ready to take over Lakshmi Vilas Bank (LVB) in case the beleaguered lender’s proposed transaction with Clix Capital does not materialise. Apart from PNB, another public sector bank has been asked to look into the books of LVB.

According to a senior PNB official, the bank was sounded off by the RBI following the sudden turn of events last Friday, when the re-election of seven directors of LVB was rejected by its shareholders. The RBI on Sunday approved a committee of directors to