Finance

Significant progress in proposed merger with Clix Group: Lakshmi Vilas Bank

Kolkata: Lakshmi Vilas Bank said that it has made “significant progress” with Clix Group for the proposed merger of the two. The bank also said that it has completed a minor incremental due diligence this week as requested by Clix Group.

“Now, the respective sides are in the process of a workable and mutually acceptable framework,” the bank announced Saturday.

Meanwhile, the ailing private sector lender has seen its capital adequacy ratio (CAR) turning negative (-2.85%) for the first time while its tier 1 capital has been in the negative zone since March. Tier 1 capital was a negative 4.85% at the end of September against the minimum requirement of 8.875%.

If the proposed merger of Clix Capital Service and Clix Finance India into the bank goes through, the issue of capital would be addressed.

The old generation private lender reported a net loss of Rs 397 crore for the September quarter, compared with Rs 357 crore net loss in the year ago period. Its operating loss however narrowed to Rs 5.7 crore against Rs 40 crore same quarter last year.

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