The shares of Lakshmi Vilas Bank continue to fall for the sixth consecutive day due to the changes in the ownership. Now, shares dropped by 53 percent due to the circulation of negative reports around the company.
On Tuesday, the stock plunged 9.88 percent to Rs 7.30, touching its lower circuit limit on BSE. At NSE, the shares dropped by 9.88 percent to Rs 7.30 making its lowest trading permissible limit for the day.
Since, November 17, the stocks of LVB has tanked 53.35 percent on the BSE.
Recently, the government has placed Lakshmi Vilas Bank under a one-month moratorium and replaced its board member, and ordered a withdrawal limit of Rs. 25,000 per depositor.
Within an hour, the apex bank, RBI issued a statement stating that Lakshmi Vilas Bank will be merged with DBS India. The step was taken on the advice of the Reserve Bank of India, because of the declining financial health of the private sector lender.
LVB is the third bank to be placed under the moratorium since September 2019 after the co-operative bank PMC in 2019 and Yes Bank in March 2020. Yes Bank has successfully been revived under the guidance of State Bank.