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Lakshmi Vilas Bank, under PCA, says making efforts to improve health

NEWSBILLA
  • The bank said it is exploring various avenues for raising capital to shore up its capital adequacy ratio
  • LVB reassured all customers that it can transact normal business and there are no restrictions on operations by depositors

Mumbai: Following Reserve Bank of India’s (RBI) restrictions imposed on Lakshmi Vilas Bank (LVB), the private lender said it shall make all efforts to improve its financial health.

The bank reassured all customers that it can transact normal business and there are no restrictions on operations by depositors. It added that it can also undertake lending activities to all segments, except corporates and other stressed and high-risk sectors.

“Management of the bank welcomes the guidance of RBI and shall make all possible efforts to improve the overall financial health of the Bank. LVB seeks the support and patronage of its customers in the times ahead which will among others help the bank in achieving its objective of nursing the bank to sound financial health,” the bank said in a statement late on Saturday.

Mumbai: Following Reserve Bank of India’s (RBI) restrictions imposed on Lakshmi Vilas Bank (LVB), the private lender said it shall make all efforts to improve its financial health.

The bank reassured all customers that it can transact normal business and there are no restrictions on operations by depositors. It added that it can also undertake lending activities to all segments, except corporates and other stressed and high-risk sectors.

“Management of the bank welcomes the guidance of RBI and shall make all possible efforts to improve the overall financial health of the Bank. LVB seeks the support and patronage of its customers in the times ahead which will among others help the bank in achieving its objective of nursing the bank to sound financial health,” the bank said in a statement late on Saturday.

Under PCA, banks are mandated to cut lending to corporates and focus on reducing concentration of loans to certain sectors. They are also restricted from opening new branches and paying dividends. Banks currently under PCA are United Bank of India, Indian Overseas Bank, Central Bank of India, IDBI Bank and UCO Bank.

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