The government on Tuesday placed Lakshmi Vilas Bank under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.
Shares of the lender were trading at 52-week low values on exchanges. (Photo: Twitter)
Shares price of Lakshmi Vilas Bank continued to plunge for the fourth consecutive day on Friday to hit a new 52-week low value during the intra-day trade as investors remained cautious.
On BSE, the shares plunged 9.55 per cent to hit lower circuit limit of Rs 9. Similarly on NSE the scrip was locked in the lower circuit of Rs 9 by declining 10 per cent.
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Shares of the lender were trading at 52-week low values on exchanges.
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The government on Tuesday placed Lakshmi Vilas Bank under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.
The step was taken by the government, on the advice of the Reserve Bank, in view of the declining financial health of the private sector lender.
T N Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of the bank. Besides, the central bank has also placed in public domain a draft scheme of amalgamation of Lakshmi Vilas Bank with DBS Bank.
Besides, the Reserve Bank of India has also placed in public domain a draft scheme of amalgamation of Lakshmi Vilas Bank with DBS India, wholly-owned subsidiary of DBS Bank Ltd, Singapore (DBS). This step was taken keeping the deteriorating financial condition of the bank in mind.
Keeping the latest developments into consideration, Capri Global Holdings, a public shareholder of the lender sold shares worth Rs 2.54 crore on Wednesday through a bulk deal on BSE. The shares were picked up by Besseggen Infotech LLP, the data showed.
LVB is the third bank to be placed under moratorium since September last year after the cooperative bank PMC in 2019 and private sector lender Yes Bank this March. While Yes bank has successfully been revived under the guidance of State Bank, the PMC resolution is still a far cry.
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