Lakshmi Vilas Bank (LVB) has acquired a non-binding supply from Clix Group, the non-public sector lender stated on Thursday, weeks after the financial institution’s shareholders voted out seven administrators from its board.
The financial institution was first approached by lender Clix Capital, part of the Clix Group and majority owned by Mumbai-based non-public fairness agency AION Capital Partners, with a letter of intent in June.
AION is a partnership between New York-based Apollo Global Management and ICICI Venture, a unit of India’s ICICI Bank.
The Chennai-based lender, which has been battling unhealthy loans and governance points, has been searching for a purchaser since final 12 months. The central financial institution had in final October rejected a proposal for it to merge with shadow lender Indiabulls Housing Finance Ltd.
The Reserve Bank of India authorised a three-member committee of administrators to handle the financial institution’s operations final month after the shareholders ousted administrators, together with the chief government officer.
The financial institution didn’t give additional particulars on the supply from Clix Group on Thursday.