Lakshmi Vilas Bank raises Rs 168 cr via QIP
Lakshmi Vilas Bank (LVB) has raised R165 crore through qualified institutional placement (QIP). The issue saw participation from domestic and foreign institutional investors. Centrum Capital was the sole lead manager to the issue.
The Chennai-based bank currently operates through 460 branches and 926 ATMs in 16 states. “The bank, under the leadership of its new MD & CEO Parthasarathi Mukherjee, has laid out an ambitious growth plan that pans over the next 10 years. The Vision document 2020 and 2026, labelled LVB 2.0, have been drafted with targets on asset size, market share gains and importantly shareholder returns,” said a statement.
The management has forecast 20-25% growth for the next 10 years across all the key parameters and by 2026 and expects the business to scale nine times from the present levels. This will be led by strategy shift towards high yielding retail and SME loans, composition for which is set to rise to 75% from 58% currently and increasing the share of low-cost CASA deposits up to 25% by 2020 and to over 35% by 2026.