The reasons behind the fall of Lakshmi Vilas Bank
Synopsis
The mounting of non-performing assets started from the second half of 2017 largely due to economic distress as well as management failures of several companies. The successive net losses from September 2017 quarter along with asset quality concerns took the fizz away from the bank.
KOLKATA: In December 2016, a clutch of banks and insurance companies such as Axis Bank, IDBI Bank, Aviva Life Insurance and Pramerica Life Insurance (then DHFL Pramerica Life) put their bet on Lakshmi Vilas Bank by subscribing to the bank’s first ever private placement of equity shares. The bank had raised Rs 168 crore at Rs 140 a share, a decent sum for a sleepy 94-year old lender. That was the time when the market was gung ho about Lakshmi
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