Private sector lender Lakshmi Vilas Bank on Thursday said its deal with the Clix Group might be delayed owing to covid-19 and both parties have agreed to extend the exclusivity period till 15 September 2020.
Meanwhile, the bank’s capital adequacy ratio (CAR) as per Basel III guidelines contracted to 0.17 % as on 30 June, as against a regulatory minimum of 10.875%. The bank reported a net loss of ₹112.28 crore in the June quarter of FY21, compared to a loss of ₹237.25 crore in the same period last year.
“Despite logistical challenges arising due to COVID-19 situation, we have made significant progress with Clix Group for the proposed amalgamation of Clix Capital Service Pvt Ltd and Clix Finance India Pvt Ltd into the bank,” the bank said in a regulatory filing.
However, there may be slight delay in the mutual due diligence and preparation of documents for regulatory requirements due to the covid-19 situation and travel restrictions, it said.
“Hence, both the parties mutually agreed to extend the exclusivity period till 15 September 2020. The bank will continue to share information on the developments for funds raising in public domain as and when they materialise,” it said.
On 15 June, the bank had said it signed preliminary, non-binding letter of intent (LoI) with Clix Capital Services Pvt Ltd and Clix Finance India Pvt Ltd in relation to the proposed amalgamation of Clix Group with the bank.
Under the non-binding LoI, the proposed amalgamation is subject to completion of mutual due-diligence in exclusive window of 45 days, and will be subject to regulatory and other customary approvals, the bank had said.
The article was first published on livemint.com