Laxmi Vilas Bank has plans to foray into the housing finance segment. The bank also aims at raising around Rs 400 crore in order to go ahead with its expansion plans.

The bank is planning to go either for fund raising either through the qualified institutional placement (QIP) route or through an ADR/GDR, either at one step or in installments.

"We plan to enter the housing finance business and also raise around Rs 400 crore for which we have obtained enabling resolutions from our Board," the bank's Managing Director & CEO, Mr K S R Anjaneyulu said.

He added that with rapid growth of the bank, it would be needing funds for fulfilling its expansion plans and also to widen its branch network.

"Looking at the significant expansion in branch network as well as strong growth in business, LVB will require more capital to grow. That is why after having raised funds through a rights issue in December 2009, we plan to raise further capital in the current fiscal," Mr Anjaneyulu said.

The bank has sought license for opening 35 new branches in the country from RBI. The licenses still await approval, he said.