Lakshmi Vilas Bank stock tanks over 53% in 6 days

Scene outside Lakshmi Vilas Bank in Chennai. File   | Photo Credit: Bijoy Ghosh

Shares of Lakshmi Vilas Bank continued to face selling pressure for the sixth consecutive day and have tanked over 53% during the period amid negative reports around the company.

On Tuesday, the stock plunged 9.88% to ₹ 7.30 — its lower circuit limit as well as one year low — on BSE.

At NSE, it plummeted 9.88% to ₹ 7.30 — its lowest trading permissible limit for the day.

Since last Tuesday (November 17), the stock has tanked 53.35% on the BSE.

The government has placed Lakshmi Vilas Bank (LVB) under one-month moratorium, superseded its board and capped withdrawals at ₹ 25,000 per depositor.

Watch | What is a moratorium?

The step was taken on the advice of the Reserve Bank of India, in view of the declining financial health of the private sector lender.

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.

The Hindu Explains | What is a bank moratorium, and when does it come into play?

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Printable version | Jan 21, 2021 5:00:55 PM |

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