In response to a Business Standard email on queries on fund raising and its usage, Clix Spokesperson said, "We continue to engage with the newly constituted Board at the Lakshmi Vilas Bank.
The discussions and negotiations are ongoing at this point”. The spokesperson did not give the reasons behind the fund raising.
LVB is an ailing small private bank under Reserve Bank of India’s Prompt Corrective Action (PCA) regime.
Services Pvt Ltd, (formerly GE Money Financial Services Pvt Ltd) was set up by the GE Group for consumer finance, auto leasing, corporate lending and healthcare equipment financing. In March 2016, GE group entered into a management buy-in arrangement with Pramod Bhasin and Anil Chawla, former top executives at GE India, to exit its Indian commercial finance business. The management buy-in by Bhasin and Chawla was backed by funding from private equity firm AION Capital Partners.
According to a filing with the NSE, the company earned a profit after tax (PAT) of Rs 20.75 crore during the FY20, as against Rs. 7.41 crore in the previous financial year. The total income rose to Rs 506.64 crore from Rs 354.56 crore a year ago.
It transferred Rs 4.26 crore to a statutory reserve during the year against Rs 1.53 crore last year. The board of directors did not recommend any interim or final dividend during the financial year.
Its assets under management (AUM) rose by 6.77 per cent to Rs 3,157.97 crore as on March 31, 2020 as compared to Rs 2,957.67 crore as on March 31, 2019.
The company continues to strengthen its provisioning norms beyond the RBI regulations by provisioning based on the experience and emerging trends. Consequently, it is looking at the slow down in the economy and its impact on the business, on account of Covid-19.
The company is a NBFC with focus on lending to MSMEs and retail borrowers and expanded the existing business and launched new products based on strong base of technology, analytics and robust risk management in 2019-20.
In 2020-21, he company will recalibrate its business lines and focus on products keeping in mind the risk and reward parameters in view of the Covid-19 pandemic and its impact on the economy.