New Delhi, Sep 16 (IANS); Lakshmi Vilas Bank and Clix Group have substantially completed the due diligence on a proposed amalgamation of the financial services company with the bank.

In June, Lakshmi Vilas bank had signed a preliminary, non-binding letter of intent (LoI) with Clix Capital Services Private Limited and Clix Finance India Private Limited, collectively the Clix Group, in relation to the proposed amalgamation of Clix Group with the Bank.

Under the non-binding LoI, the proposed amalgamation is subject to completion of mutual due-diligence, regulatory and other customary approvals.

The bank had informed the exchanges in July that, as per the mutual understanding between parties, the exclusivity period was extended till September 15 due to the prevailing pandemic situation.

"We wish to inform that the mutual due diligence is substantially complete, and the parties are in discussions on the next steps. The Bank will continue to share any further information as and when they materialise," LVB informed the exchanges.

Clix Capital had acquired GE Capital's commercial lending and leasing business in 2016. Pramod Bhasin, formerly of Genpact and GE Capital, is Founder and Chairman of Clix.

Chennai-based Lakshmi Vilas Bnak continues to have significant presence in the state of Tamil Nadu. The bank has presence in 16 states and 3 Union Territories across the country.

The bank was founded in 1926 by a group of seven progressive businessmen in Karur under the leadership of V.S.N. Ramalinga Chettiar.