The shares of Lakshmi Vilas Bank were locked at 5% lower circuit in Friday's trading session after the Economic Offences Wing in New Delhi registered a First Information Report (FIR) against board members of the lender. Lakshmi Vilas Bank share price formed a gap down chart pattern and opened with a loss of 4.94% today, hitting the 5% lower circuit at Rs 36.55. The share price is trading 4.38% away from 52 week low of Rs 34.95 on the BSE. Volume-wise, shares totalling to 1 lakh and 1.5 lakhs are changing hands on BSE and NSE. There were pending sell orders, offering shares amounting to 35,458 on BSE and 2,54,970 on NSE, with no buyers bidding on the stock.
The bank informed the stock exchanges that Religare Finvest Ltd (RFL), the lending arm of Religare Enterprises, had filed a complaint against the private sector lender alleging that Lakshmi Vilas Bank misappropriated four fixed deposits of Religare Finvest worth more than Rs 790 crore, thereby hurting its financial health. This misappropriation caused a massive unlawful loss to RFL and, consequently, to all its stakeholders, including the public shareholders, it added.
Lakshmi Vilas Bank, in its regulatory filing on September 26, said it had received the copy of the FIR on December 25, and that the bank was considering appropriate legal measures to counter the same. "The new management discovered that one of the major reasons for RFL's terrible financial condition was the misappropriation by LVB of monies that were due to RFL, on account of four fixed deposits placed by it with LVB amounting to approx Rs 791 crore," Religare Finvest (RFL) has said in a filing on May 16.
By Rupa Burman Roy