Lakshmi Vilas Bank "substantially completes" due diligence for proposed merger with Clix Group

Kolkata: Lakshmi Vilas Bank said it "substantially completed" the due diligence for its proposed merger with the Clix Group, even as the extended deadline for the completion of the process ended Tuesday, and said that the two parties would continue to discuss the future course of action. This leaves doubts on whether the fate of the deal still hangs in balance.

Two people close to the deal however told ET that the next step would be to hiring valuers. "We are investing our time in it because we are quite positive and confident about the deal," one of the persons said. "There have been some procedural delays because of the disruptions caused by the Covid-19 pandemic," he said.

"The mutual due diligence is substantially complete, and the parties are in discussions on the next steps," the bank said in a regulatory filing to stock exchanges late Tuesday.

The due-diligence was carried out by E&Y and Deloitte. A market source said the bank has likely shortlisted three multinational accounting firms to carry out the valuation.



The capital-starved Lakshmi Vilas Bank signed a non-binding agreement with Clix Captial, a digital lending non-banking finance company that aimed to acquire a majority stake in the South-based private sector lender. The bank had signed a preliminary, non-binding letter of intent with Clix Capital Services Pvt Ltd, Clix Finance India Pvt Ltd, as on June 15.


The bank's tier 1 capital ratio is turned negative (- 1.83%), limiting its ability to lend, as against the minimum requirement of 8.875%. Capital adequacy ratio is at 0.17% compared with the regulatory minimum of 10.875%.


Under the non-binding agreement, the proposed amalgamation is subject to completion of mutual due-diligence, regulatory and other customary approvals.As per the mutual understanding between parties, the exclusivity period was extended till September 15 due to prevailing pandemic situation, the bank said.The Reserve Bank of India last year had put Lakshmi Vilas Bank under prompt corrective action (PCA) citing high bad loans, insufficient capital among others.



Lakshmi Vilas Bank "substantially completes" due diligence for proposed merger with Clix Group

Terror hotbed Pulwama turning pencil slate producing hub | India News - Times of India

Terror hotbed Pulwama turning pencil slate producing hub

PULWAMA: Mention of Pulwama may bring memories of the terror attack on the CRPF convoy in February last year, leaving over 40 jawans killed, but this district in south Kashmir is quietly contributing to the field of education, and the state’s economy in a small way, with its pencil slate manufacturing industry.
In a tiny village Oukhoo in Pulwama, these units manufacturing pencils of soft slate or soapstone, are thriving in almost every household.
Manzoor Ahmad, who works at a pencil slate unit in Oukhoo, said the trade provides jobs to thousands of youth across the Kashmir valley and particularly in Pulwama district.
“We have 90% local boys and girls working in these units while the rest of the skilled labour is hired from outside J&K who operate machinery for making blocks,” said Ahmad.
Manzoor is, however, wary of the future of the trade owing to the fear of raw material like poplar trees drying up, with the wood used to make holders for these pencils.
Rifat Ara, 28, of Oukhoo earns Rs 6000 a month, working in a pencil slate unit while Firdous Ahmad of the same village earns get Rs 7000 a month.
The pandemic has, however, hit the industry hard.
“The pandemic has forced unit holders to shut workplaces and we are not being paid for the time being,” said Rifat. Unit holders are trying to compensate workers by assigning related jobs in these units, said Firdous.
Director industries department Mehmood Shah told TOI that the number of pencil slate manufacturing units are on the rise across Kashmir. However, trade is particularly popular in Pulwama district because of the moist soil in the district, he added.
Owner of a unit in Srinagar Sair Mir said the factories are even manufacturing blocks of wood which are sent to other parts of the country for the final product of pencil manufacturing.
Ghulam Rasool Allai of Oukhoo village is also running a pencil slate manufacturing unit and has given jobs to around 100 odd people of the hamlet besides in adjacent areas like Kakapora in Pulwama. “My unit is partially running. We are not able to open the unit completely owing to the pandemic, but we try to keep it running for employees who need to earn their livelihood,” he said.

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    Lakshmi Vilas Bank "substantially completes" due diligence for proposed merger with Clix Group

    Pakistan violates ceasefire in Rajouri, some injuries reported on Indian side | India News - Times of India

    Pakistan violates ceasefire in Rajouri, some injuries reported on Indian side

    JAMMU: Pakistan troops on Tuesday afternoon violated the ceasefire along the Line of Control (LoC) in Sunderbani sector of Jammu and Kashmir’s Rajouri district by resorting to unprovoked intense firing and shelling on forward posts. The Pakistan firing resulted in some injuries to Indian side, but no details are available as yet.
    Jammu-based defence spokesman Lt Col Devender Anand said, “Pakistan initiated unprovoked ceasefire violation by resorting to firing with small arms & intense mortar shelling along LoC in Sunderbani sector in District Rajouri of J&K. Indian Army retaliated befittingly.”
    On September 13, the Pakistan troops violated the ceasefire for the fifth consecutive day along the Line of Control (LoC) in Poonch district.
    Incidentally, BSF too foiled an infiltration bid by a group of four-five armed terrorists in Samba sector on Monday night.

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