Clix Capital Services has approached Lakshmi Vilas Bank for a potential investment in the bank.
In a regulatory filing, Lakshmi Vilas Bank on Monday said that it has received a preliminary, non-binding letter from the potential investor and its Board of Directors has considered it for further processing.
“The bank routinely evaluates capital raising options and proposals which are in its best interest. The Bank has received a preliminary, non-binding letter of intent (LoI) from M/s Clix Capital Services Private Limited & Clix Finance India Private Limited dated June 12, 2020, which the Board of Directors of the Bank has considered for further processing in their meeting held today (15th June 2020),” it said.
It said that under the non-binding LoI, the proposed transaction is subject to completion of due diligence, which the bank and the intending parties will be carrying out and will be subject to regulatory and other customary approvals.
“In the event, the discussions between the contracting parties in relation to the proposed transactions are successful and definitive agreements are executed, we will make appropriate disclosures as required under the provisions of applicable law,” the filing added.
The bank in the past couple of years has faced liquidity and asset quality issues and has been looking for prospective investors and buyers. It had come up with a merger plan with Indiabulls Housing Finance last year but it was not approved by the Reserve Bank of India.