RBI impose moratorium on Lakshmi Vilas Bank
20/11/2020 6:01 am
- The Chennai-based bank has a network of 563 branches.
- It holds deposits of Rs 20,973 crores. The bank had undergone a steady decline in the last three years.
- It has been experiencing continuous withdrawal of deposits and very low levels of liquidity. The bank failed to raise adequate capital to address its issues. In September quarter of the financial year 2020-21, the bank posted net loss of Rs 397 crores as against Rs 112 crores in June quarter.
- Around one-fourth of the bank advances have turned into bad assets. Also, the non-performing assets of the bank were at 25.4% of its advances in the September quarter. The RBI has put a cap of Rs 25,000 on withdrawals from the bank.