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Investors continue to dump Lakshmi Vilas Bank shares; stock tanks over 48% in five days

On Monday, the Lakshmi Vilas Bank stock plunged 10 per cent to Rs 8.10 -- its lower circuit limit as well as one year low -- on the BSE. On the NSE, it plummeted 10 per cent to Rs 8.10 -- its lowest trading permissible limit for the day.

By: PTI | New Delhi | November 23, 2020 2:39:23 pm
lakshmi vilas bankThe Reserve Bank of India (RBI) said the moratorium imposed on Lakshmi Vilas Bank Ltd will be lifted on November 27, resulting in depositors being able to withdraw their funds without any limits.

Shares of Lakshmi Vilas Bank declined for the fifth consecutive day on Monday and have tanked over 48 per cent during this time as investors continued to desert the counter amid host of negative news surrounding the company.

On Monday, the stock plunged 10 per cent to Rs 8.10 — its lower circuit limit as well as one year low — on the BSE.

On the NSE, it plummeted 10 per cent to Rs 8.10 — its lowest trading permissible limit for the day.

In five trading days, the stock has tanked 48.24 per cent on the BSE.

On Tuesday, the government placed Lakshmi Vilas Bank (LVB) under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.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 of India, in view of the declining financial health of the private sector lender.

Also Read | LVB merger: Investors may seek legal recourse, unions question DBS Bank selection

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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