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Lakshmi Vilas Bank stock ends below face value for second consecutive session

Lakshmi Vilas Bank stock has lost 48.24% in four sessions

twitter-logoBusinessToday.In | November 23, 2020 | Updated 16:52 IST
Lakshmi Vilas Bank stock falls to all-time low, ends below face value for second consecutive session
Lakshmi Vilas Bank share has lost 61.52% in one year and fallen 53.04% since the beginning of this year.

Share of Lakshmi Vilas Bank closed at its all-time low today falling continuously for four sessions after Reserve Bank of India (RBI) put the lender under moratorium for 30 days, effective from 6:00 pm on November 17 till December 16. The share has lost 48.24% in four sessions.

The stock closed 10% lower at Rs 8.10 against previous close of Rs 9 on BSE. The stock has ended below its face value of Rs 10 for the second consecutive session today.

Market cap of the lender fell to Rs 272 crore on BSE.

The curious case of loan evergreening at Lakshmi Vilas Bank

The micro cap stock stands lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has lost 61.52% in one year and fallen 53.04% since the beginning of this year.

The RBI has restricted withdrawals at Rs 25,000 under the moratorium. Depositors with more than one account will be allowed to withdraw only Rs 25,000 from all their accounts. The step was taken by the government, on the advice of the Reserve Bank, in view of the declining financial health of the private sector lender.

T N Manoharan, former non-executive chairman of Canara Bank, was appointed as the administrator of the bank. Besides, the central bank has also placed in public domain a draft scheme of amalgamation of Lakshmi Vilas Bank with DBS Bank.

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