Lakshmi Vilas Bank to raise Rs 250 Cr through QIP

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Chennai, Aug 9 (UNI) The Private Sector Lakshmi Vilas Bank (LVB) has not dropped its proposal to raise Rs 250 crore through Qualified Institutional Placement (QIP) to raise its Asset portfolio, its Managing Director V S Reddy said today.

Talking to reporters after launching its internet banking facility to its retail customers here, he said the issue would be discussed at the August 14 Annual General Meeting.

''The Bank has resolved that one of the sources for raising the capital was through QIP issue. But it was not withdrawn so far'', he said.

Mr Reddy said the shareholders of the bank would decide on the issue at the AGM.

Raising Rs 250 crores was part of the Bank's plans to increase its Asset portfolio to Rs 6000 to Rs 6,500 crore by the end of this c+urrent fiscal, he said.

''This requires a large capital base. We need additional money, which can come from various routes, one of which is QIP'', he said.

Mr Reddy said the Bank was eyeing an ambitious target of achieving a total business of Rs 15,000 crores (Deposits Rs 9000 crore and Advances Rs 6000 crore) by the end of this fiscal from the present Rs 9,450 crore.

''Though it looked ambitious, we are confident of achieving it as there has been reasonable growth in advances and deposits.

The Bank has grown at a particular pace in the past, leaving a vacuuum that needs to be fulfilled'', he added.

He said the bank has been looking at growth from all segements, with thrust on mobilising low cost deposits.

To a question, he said the Bank has applied to Reserve Bank of India(RBI) seeking permission to open 30 more branches to increase it to 280 branches by the end of this fiscal.

The bank would also increase its own ATMs from 60 to 80 this year.

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