It’s not only the equity shares of Lakshmi Vilas Bank (LVB) that are being written down: there was bad news for those who had invested in the Tier II bonds of the lender as the Reserve Bank of India (RBI) asked the administrator to fully write down the Rs 318.20 crore of these bonds.

In a late evening regulatory filing to the stock exchanges, LVB said that the RBI has advised the need to fully write-down the Series VIII, Series IX and Series X Basel-III complaint Tier-2 Bonds before the amalgamation comes into effect from the appointed date of November 27.

LVB had issued the three tranches of unsecured, non-convertible redeemable fully paid-up Basel III complaint Tier II bonds. They were issued in March 2014 for Rs 78.10 crore, in September 2015 for Rs 140.10 crore and June 2017 for Rs 100 crore.

The RBI cited the information memorandum of the bonds for its decision to write off the debt instruments.