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.
On the BSE, the stock was trading down 9.88 per cent to Rs 7.30, its Tuesday’s lower circuit limit as well as one year low. (Photo: Twitter)
Shares price of Lakshmi Vilas Bank plunged further on Tuesday and have tanked over 53 per cent during the six-day period amid negative reports around the company.
On the BSE, the stock was trading down 9.88 per cent to Rs 7.30, its Tuesday’s lower circuit limit as well as one year low.
Similarly, on the NSE, it plummeted 9.88 per cent to Rs 7.30, its lowest trading permissible limit for the day.
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Since last Tuesday (November 17), the stock has tanked 53.35 per cent on the BSE. On that day, the government placed Lakshmi Vilas Bank under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.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.
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.
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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