LVB is one of the oldest private sector banks in Tamil Nadu
LVB is one of the oldest private sector banks in Tamil Nadu

No connection between RBI's action and FIR filed by Religare: Lakshmi Vilas Bank

ANI | Updated: Oct 01, 2019 11:36 IST

New Delhi [India], Oct 1 (ANI): Lakshmi Vilas Bank (LVB) issued a public notice on Tuesday stating that the recent restriction imposed by Reserve Bank of India (RBI) as prompt corrective action (PCA) has no connection with the first information report registered by the Economic Offences Wing of Delhi Police on a complaint by Religare Finvest Ltd.
"Over the last few days, the bank came across various unsubstantiated reports in the media, erroneously conjecturing the PCA action of RBI to have commenced owing to the FIR registered by EOW. The bank wishes to clarify that the PCA notice of RBI has no relationship whatsoever and is completely independent of the frivolous EOW complaint and malicious allegations by RFL," said the notice.
"At the outset, the bank stated that PCA initiated by RBI on September 27 is on account of high net non-performing assets, insufficient capital to risk-weighted assets ratio, etc in terms of RBI guidelines. Banks periodically do undergo such corrective action by the regulator," it said.
The bank stated in its public notice that it will cooperate with probe agencies and regulatory authorities to bring out alleged malicious attempts of Religare Finvest Ltd to mislead the public to cover up a massive fraud indulged by its own promoters.
"The bank is also initiating appropriate action against the company, its directors and others for criminal defamation, malicious prosecution and causing disrepute to the bank and directors," it said.
Established in 1926, LVB is one of the oldest private sector banks based out of Tamil Nadu. As on March 31, its net advances stood at Rs 20,103 crore and deposits at Rs 29,279 crore.