Mumbai: Lakshmi Vilas Bank on Tuesday said US-based Tilden Park Capital Management has informed the lender about its proposed investment in the bank.
In a notice to the stock exchanges, Lakshmi Vilas Bank (LVB) also said that it has not received proposal from any other entity.
The clarification comes after an Economic Times report said Tilden Park has sounded out the Reserve Bank of India (RBI) for buying a sizeable stake in the bank. The report had said Tilden was introduced to LVB by Cantor Fitzgerald, the New York-based financial services firm where former Deutsche Bank co-CEO Anshu Jain is part of the top leadership team.
Last week, Moneycontrol had reported that DBS Bank and Indostar Capital are also looking to acquire stake in the cash-strapped bank.
The interest in the lender comes four months after RBI had rejected the proposed merger between LVB and Indiabulls Housing Finance Ltd. The private sector lender is currently under the RBI's Prompt Corrective Action (PCA) framework following a sharp rise in its non-performing assets, insufficient liquidity and negative return on assets for two consecutive years.
Under PCA, banks are mandated to cut lending to companies and focus on reducing concentration of loans to certain sectors. They are also restricted from opening new branches and paying dividends. Additionally, the bank requires prior approvals for entering into any material transaction other than the usual course of business.
The promoters of LVB hold 6.78% in the lender. Indiabulls Housing Finance (4.99%), PE fund Jupiter Capital Private Ltd (1.08%), Srei Infra Finance (1.92%), Capri Global Holdings Pvt Ltd (2.62%) and the Life Insurance Corporation of India (1.62%) are some of the major shareholders in the public category.
In the last four sessions, shares of the bank have risen 33.8% to ₹19.80 apiece.
