Laxmi Vilas Bank is not only an age-old bank in the southern part of India but also a listed entity. However, the Laxmi Vilas Bank is currently facing a financial crisis as it has depleted the capital adequacy ratio, due to the rise in bad loans. Since one year, there is no sign of company recovering from its bad loans. On another hand, the capital adequacy ratio in December 2018 dropped to 7.57% from 9.67% in September 2018.

As a result, the company founded in 1926 has now joined hands with Indiabulls to gain back the sound financial health of the company. With Indiabulls merging, The new entity will become Indiabulls Lakshmi Vilas Bank. Being a bank that started at roots in a small town and still caters to the remote areas, the bank is widely spread across India. The newly merged entity will shift its headquarters to Mumbai. The institutional management of Indiabulls will lead to clearance of the Non-Performing Asset (NPA) of Laxmi Vilas Bank.