Shares of The Lakshmi Vilas Bank Limited (BSE:534690) surged 5% to INR 22.15 on the BSE on July 03, 2020 after Business Standard reported that Clermont Group is in talks to pick up a sizeable stake in the bank. This round of capital infusion, if approved, could help LVB increase its capital adequacy from 3.45% as on December 31, 2019, to over 7-8%. With an investment of $150 million - $200 million (INR 11 billion – INR 15 billion), Clermont is eyeing a 15-20% stake in LVB, the report said. “The capital infusion is likely to happen ahead of the merger with Clix and this should help the bank stay afloat till the merger is approved by the Reserve Bank of India (RBI) and concludes thereafter, a process that could take nine-12 months,” said a person working on the deal.