Lakshmi Vilas Bank shares slump 10 per cent to hit a 52-week-low

Shares of Lakshmi Vilas Bank slumped additional and fell 10 per cent to hit a new 52-week low worth in early commerce on Friday as investor sentiment remained cautious.

This can also be the fourth consecutive session of loss for the Lakshmi Vilas Bank (LVB) stock as investor sentiment was spooked after the federal government positioned the lender below a one-month moratorium and outdated its board.

On BSE, the shares plunged 9.55 per cent to hit decrease circuit restrict of Rs 9.

On NSE the scrip was locked within the decrease circuit of Rs 9 by declining 10 per cent.

Shares of the lender had been buying and selling at 52-week low values on exchanges.

On Tuesday, the federal government positioned Lakshmi Vilas Bank below a one-month moratorium, outdated its board and capped withdrawals at Rs 25,000 per depositor.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, in view of the declining monetary well being of the personal sector lender.

T N Manoharan, former non-executive chairman of Canara Bank, has been appointed because the administrator of the financial institution. Besides, the central financial institution has additionally positioned in public area a draft scheme of amalgamation of Lakshmi Vilas Bank with DBS Bank.

LVB is the third financial institution to be positioned below moratorium since September final 12 months 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 steerage of State Bank, the PMC decision remains to be a far cry.

Meanwhile, Capri Global Holdings, a public shareholder of the lender offered shares value Rs 2.54 crore on Wednesday by a bulk deal on BSE. The shares had been picked up by Besseggen Infotech LLP, the information confirmed.

(Only the headline and movie of this report might have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)

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