Lakshmi Vilas Bank stock tanks over 53% in 6 days
The federal government has positioned LVB underneath one-month moratorium.
Shares of Lakshmi Vilas Bank continued to face promoting stress for the sixth consecutive day and have tanked over 53% through the interval amid unfavourable reviews across the firm.
On Tuesday, the inventory plunged 9.88% to ₹ 7.30 — its decrease circuit restrict in addition to one yr low — on BSE.
At NSE, it plummeted 9.88% to ₹ 7.30 — its lowest buying and selling permissible restrict for the day.
Since final Tuesday (November 17), the inventory has tanked 53.35% on the BSE.
The federal government has positioned Lakshmi Vilas Financial institution (LVB) underneath one-month moratorium, outdated its board and capped withdrawals at ₹ 25,000 per depositor.
The step was taken on the recommendation of the Reserve Financial institution of India, in view of the declining monetary well being of the non-public sector lender.
LVB is the third financial institution to be positioned underneath moratorium since September final yr after the cooperative financial institution PMC in 2019 and personal sector lender Sure Financial institution this March. Whereas Sure financial institution has efficiently been revived underneath the steering of State Financial institution, the PMC decision remains to be a far cry.
The Hindu Explains | What is a bank moratorium, and when does it come into play?