With IBHF deal taking time, capital-starved LVB looking at PE investment

Lakshmi Vilas Bank (LVB) Tuesday said it is not "unduly worried" about prospects of its merger plans with non-bank lender Indiabulls Housing Finance but is looking to raise money from private equity investors to take care of immediate capital requirements.

The south-based lender, which narrowed its loss to Rs 264 crore for the March quarter from the Rs 622 crore in the year-ago period, admitted to being capital starved which resulted in contraction of the overall business.

"We are looking at other sources of capital which will include raising money from a private equity investor at the earliest to help the bank," its managing director and chief executive Parthasarathi Mukherjee told PTI over phone.

He said as the merger plan with IBHF will take time, the bank has initiated negotiations with the financial investors on board at the earliest, but did not disclose the stake which will be picked up or the quantum of money which will be infused.

Mukherjee said IBHF should not have a problem