Lakshmi Vilas Bank plans to raise Rs 300 crore through QIP

Lakshmi Vilas Bank plans to raise Rs 300 crore through QIP

Lakshmi Vilas Bank is planning to raise around Rs 300 crore to support its growth in the overall business. The bank plans to raise the money through qualified institutional placement (QIP).

Speaking to Business Standard after announcing a series of retail initiatives including signing up with SBI Card, introduction of LVB Mobile app and tie-up with Cigna TTK Health, Chief Operating Officer A J Vidyasagar said the bank would grow its overall business at 25 per cent in 2015-16 and 2016-17.

“It is not our final decision. Fund-raising depends on the market conditions also,” said Vidyasagar. Recently, the bank had raised Rs 140 crore through tier-II bonds.

The bank has traditionally been focusing on the small and medium enterprises segment. While it continue to focus on it, the other growth area would be personal loans, non-business retail and other retail products.

According to Vidyasagar, retail advances, which is currently below Rs 10 crore, has grown 32 per cent on a year-on-year (y-o-y) basis.

Total business mix of the bank improved from Rs 33,039.20 crore to Rs 41,019.12 crore at the end of September 2015, an increase of 24 per cent, y-o-y.