Frauds of Lakshmi Vilas Bank.
Introduction to the case: The case was listed on 28 September 2019 by the Delhi Police’s Economic Offence on the Lakshmi Vilas Bank. According the report the bank has high level of bad loans and low capital to manage risks and negative returns on assets for two consecutive years. According to the Delhi Police’s Economic Offence has said that the board of LVB is cheating and misusing of the funds. The regulatory action may cast doubt over the Indianbulls Housing Finance which proposed the merger with LVB and waiting for the RBI norms. PCA initiated after an on spite inspection, under the risk based supervision which was carried out 31 march 2019. For the fiscal year 2019 the bank net NPA stood at 7.49 percent, capital adequacy ratio was at 7.72 percent and net loss was 894.10 crore. PCA aimed to improve the performance of the bank and will not have any adverse impact on the day to day operations of the bank. Banks currently under PCA are Union Bank Of India, IDBI Bank, Indian...