Lakshmi Vilas Bank hit an upper circuit of 10% at Rs 22.35 after the private lender said that the mutual due diligence process for the proposed amalgamation of Clix Group with the bank is substantially complete.
The parties are in discussions on the next steps, the bank said in a BSE filing made after market hours yesterday.
On 15 June 2020, Lakshmi Vilas Bank said that it had received preliminary, non-binding letter of intent (LoI) from Clix Capital Services & Clix Finance India (collectively the Clix Group). Under the non-binding LoI, the proposed amalgamation is subject to completion of mutual due-diligence, regulatory and other customary approvals.
Since the announcement, the stock has gained 53.29% from its close of Rs 14.58 on 12 June 2020.
On 30 July 2020, the bank had informed that, as per the mutual understanding between parties, the exclusivity period was extended till 15 September 2020 due to prevailing pandemic situation.
Lakshmi Vilas Bank is a private sector commercial bank. The bank provides a variety of services, including corporate banking, commercial & personal banking, retail banking, NRI services, insurance and development banking. As on 30 June 2020, the bank had a network of 566 branches, 5 Extension -counters, 918 ATMs in 19 states and 1 union territory. Tamil Nadu is the dominant contributor of business for the bank.
The bank reported a loss of Rs 112.28 crore in Q1 FY21 as compared to a loss of Rs 237.25 crore recorded in Q1 FY20. Total income during the quarter declined 20.4% YoY to Rs 538.84 crore.
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