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Home >Markets >Stock Markets >Lakshmi Vilas Bank shares lose more than half their value in 7 sessions

Shares of Lakshmi Vilas Bank (LVB) continue to face selling pressure for the seventh consecutive day. The shares of the troubled bank have tanked over 55% during the period amid negative reports surrounding the company. The analysts expect further decline. On Wednesday, the stock tanked 4.79% to 6.95. The current price is its lower circuit limit as well as one-year low on BSE. On NSE, LVB share has plummeted 4.79% to 6.95, its lowest permissible trading limit for the day.

The stock has fallen 55.59% on the BSE, since last Tuesday (November 17).

The government has placed Lakshmi Vilas Bank under one-month moratorium, superseded its board and capped withdrawals at 25,000 per depositor.

Reserve Bank of India has proposed to merge capital-starved Lakshmi Vilas Bank with DBS Bank India on November 17.

As reported by PTI, The Reserve Bank did not issue the final merger scheme for Lakshmi Vilas Bank with DBS India on Friday as stated earlier and is likely to do so only in the current week.

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.

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