OPEN APP
Home >Markets >Stock Markets >Lakshmi Vilas Bank continues to face selling pressure, plummets 53% in 6 days

As analysts believed, the shares of Lakshmi Vilas Bank (LVB) continued to face selling pressure for the sixth consecutive day. On BSE, the stock price tumbled 9.88% on Tuesday, its lower circuit limit as well as one year low. At NSE, it plummeted 9.88% to 7.30 -- its lowest trading permissible limit for the day. Since last Tuesday, that was November 17, the stock has tanked 53.35 %on the BSE. A share of LVB has fallen 56% in the last one month.

Reserve Bank of India has proposed to merge capital-starved Lakshmi Vilas Bank with DBS Bank India on November 17. Laxmi Vilas Bank shares were trading at 52-week low values on exchanges.

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.

On November 17, The Reserve Bank of India imposed a moratorium on Lakshmi Vilas Bank, capping deposit withdrawals at 25,000 till 16 December this year, while ordering its merger with Development Bank of Singapore (DBS). The step was taken 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.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout