Lakshmi Vilas Bank

Lakshmi Vilas Bank Limited (Tamil: லக்ஷ்மி விலாஸ் வங்கி) was founded in 1926 by a group of seven businessmen of Karur under the leadership of Shri V.S.N. Ramalinga Chettiar. Their objective was to cater to the financial needs of people in and around Karur who were occupied in trading businesses, industry and agriculture. The bank was incorporated on 3 November 1926 under the Indian Companies Act, 1913, and obtained the certificate to commence business on 10 November 1926. Subsequent to introduction of the Banking Regulations Act, 1949 and Reserve Bank of India as the regulator for the banking sector, the bank obtained its banking license from RBI on 19 June 1958, and on 11 August 1958 it became a ‘scheduled commercial bank’ signifying capability to operate as a full-fledged commercial bank.

Lakshmi Vilas Bank Limited
Public
Traded asBSE: 534690
NSE: LAKSHVILAS
IndustryBanking, financial services
Founded1926 [1]
HeadquartersChennai, Tamil Nadu
Area served
India
Key people
Subramanian Sundar
(MD & CEO) [2]
ProductsConsumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management
Revenue₹2,568.29 crore (US$360 million) (2016)[3]
₹407.12 crore (US$57 million) (2016)[3]
₹265 crore (US$37 million) (2017)[3]
Total assets₹54,511.81 crore (US$7.6 billion) (2017)[3]
Number of employees
3,565 (2016) [3]
Capital ratio10.67% (2016) [3]
Websitewww.lvbank.com

Lakshmi Vilas Bank saw considerable expansion of its branch network during the period of 1961 to 1965, when the bank took over nine other banks. In 1974, the bank started expanding the branch network beyond Tamil Nadu to benefit from opportunities in the pan-Indian market. Thus, branches were established in the neighbouring states of Andhra Pradesh, Karnataka and Kerala, important financial centres such as Mumbai, New Delhi and Kolkata as well as in other significant business centres in Maharashtra, Gujarat and Madhya Pradesh. Meanwhile, the bank attained the status of Authorized Dealer in foreign exchange in 1976 enabling it to provide full range of services to customers engaged in international trade and to overseas travellers. Mechanization was introduced in the Administrative Office as early as 1977, and data processing and computerization began in right earnest in 1993 by the bank's own in-house team. Implementation of Core Banking Solution (CBS) was started in October 2006, and all of the bank's branches were migrated to CBS by March 2008. As of 2018,Lakshmi Vilas Bank has 569 branches, 1,046 ATMs and 7 extension counters.[4]

On 5 April 2019, the board of Lakshmi Vilas Bank approved a merger of the bank with the country's second largest housing finance company, Indiabulls Housing Finance Ltd. Indiabulls shareholders will receive a 90.5% stake in the consolidated entity, to be called Indiabulls Lakshmi Vilas Bank, and LVB will receive the remaining 9.5%.[5] The merged entity will create a net worth of ₹19,472 crore and a loan book ₹1,23,393 crore for the nine months of FY1920.[6]

See also

References
  1. Lakshmi Vilas Bank, About Us
  2. "Board of Directors | Lakshmi Vilas Bank". www.lvbank.com. Retrieved 28 July 2020.
  3. "Balance Sheet 31.03.2016". lvbank.com (9 June 2016).
  5. Saha, Manojit (5 April 2019). "Lakshmi Vilas finds a new home in Indiabulls". The Hindu. Retrieved 6 April 2019.
  6. "Lakshmi Vilas Bank to merge with Indiabulls Housing Finance". thehindubusinessline. Retrieved 6 April 2019.


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