Shares of Lakshmi Vilas Bank declined for the fifth consecutive day on Monday and have tanked over 48 per cent throughout this time as buyers continued to desert the counter amid host of destructive information surrounding the corporate. On Monday, the stock plunged 10 per cent to Rs 8.10 — its decrease circuit restrict in addition to one yr low — on the BSE.
On the NSE, it plummeted 10 per cent to Rs 8.10 — its lowest buying and selling permissible restrict for the day.
In 5 buying and selling days, the stock has tanked 48.24 per cent on the BSE.
On Tuesday, the federal government positioned Lakshmi Vilas Bank (LVB) below a one-month moratorium, outdated its board and capped withdrawals at Rs 25,000 per depositor.
The step was taken by the federal government, on the recommendation of the Reserve Bank of India, in view of the declining monetary well being of the personal sector lender.
LVB is the third financial institution to be positioned below moratorium since September final yr after the cooperative financial institution PMC in 2019 and personal sector lender Yes Bank this March.
While Yes financial institution has efficiently been revived below the steering of State Bank, the PMC decision remains to be a far cry.