Baring PE Asia in talks to acquire 26% stake in Lakshmi Vilas Bank

Baring Private Equity Asia is in talks with Lakshmi Vilas Bank to buy at least a 26% stake in the Chennai-based private lender, said two people close to the development. Lakshmi Vilas Bank is keen to sell as much as 51% if permitted by the Reserve Bank of India (RBI) but bad loans may cloud a potential deal as Baring wants to value the lender at about $400 million, a far cry from Lakshmi Vilas Bank’s expectation of $1 billion, said the two people, who did not want to be named.