The bank would like to take this opportunity "to assure our customers that their deposits are safe in our bank."
Moneycontrol was the first to report on February 6 that DBS Bank India, Indostar Capital Finance, and a private sector lender had joined the race for Lakshmi Vilas Bank.
Sources say the bank recently submitted a proposal for Lakshmi Vilas Bank to the RBI.
The mid-sized lender, whose planned merger with the Indiabulls Group was scuttled by the regulator last October, has been under the Reserve Bank's PCA framework since September 2019 curbing regular lending and other operations.
At least two new suitors have emerged for ailing Lakshmi Vilas Bank.
The National Consumer Disputes Redressal Commission directed the bank to pay interest on the debited money from April 11, 2015, the day of deduction, till the date of payment.
The Tamil Nadu based bank had clocked net loss at Rs 132.30 crore during the year-ago period.
In a similarly worded release, it said a monetary penalty of Rs 75 lakh has been imposed on Syndicate Bank for non-compliance with the directions issued by RBI on frauds classification and reporting; innovative housing loan products wherein upfront disbursal of loans is done.
In the S&P BSE 500 index, as many as 8 stocks fell 10-20 percent which include names like Delta Corp, Rail Vikas, Berger Paints, Bharti Airtel, Gruh Finance, Bandhan Bank, and Adani Green Energy.
The bank was placed under the PCA framework on September 27.
On May 7, Lakshmi Vilas Bank had sought voluntary amalgamation with IBHL and ICCL.
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The bank’s stock price dropped 4.94 percent to Rs 36.55 on September 27 — its lowest trading permissible limit for the day — on the BSE after an FIR was registered against directors of the company over allegations of various offences including cheating.
The FIR is based on a complaint filed by Religare Finvest (RFL) related to an adjustment of their deposits to the dues of RHC Holding and Ranchem Private Limited.
The market prices of Lakshmi Vilas Bank and Indiabulls Housing Finance do not suggest a merger is likely to happen anytime soon
Shareholders of the Indiabulls Housing will hold approximately 90.5 percent of the post-merger enhanced equity capital of the merged entity.
In absolute term, gross NPAs were at Rs 3,358.99 crore by the end of 2018-19, higher than Rs 2,694.21 crore year ago. Net NPAs rose to Rs 1,506.29 crore from Rs 1,457.89 crore.
The board of LVB has approved the merger with IBHL in which shareholders of the bank will get 14 shares of IBHL for every 100 shares they hold.
'The bank is proposing to make a preferential allotment to Indiabulls Housing Finance to the extent of 4.99 per cent of the bank's post-money equity,' LVB said in a statement.
The board of Lakshmi Vilas Bank on April 12 approved the merger with Indiabulls Housing Finance.
At 1156, Lakshmi Vilas Bank was quoting Rs 87.90, down 4.97 percent on the BSE.