Business Today
Loading...

Lakshmi Vilas Bank stock rises 5% on reports Kotak Bank eyeing majority stake

The stock price of lender has risen 0.35% in a week. However, it has declined 28% in a month, 16% in the year 2020 and 80% in one year's period. The market capitalisation of the micro-cap stock currently stands at Rs 483 crore.

twitter-logo BusinessToday.In        Last Updated: March 11, 2020  | 13:38 IST
Lakshmi Vilas Bank stock rises 5% on reports Kotak Bank eyeing majority stake
Concerns over the private sector lender's financial health have been in limelight since last year.

Shares of Lakshmi Vilas Bank rose 4.74% in Wednesday's session on reports that Uday Kotak-led Kotak Mahindra Bank was keen on acquiring a majority stake in the fund-starved lender.

The Chennai-based lender has been in talks with other strategic investors and private equity suitors for a majority stake sale. The bank has reportedly submitted a proposal for Lakshmi Vilas Bank to the RBI for the same, according to reports.

Lakshmi Vilas Bank stock price climbed 4.74% and were locked at day's high of  Rs 14.35, up 0.65 points from the previous close of Rs 13.70 today.

The stock price of lender has risen 0.35% in a week. However, it has declined 28% in a month, 16% in the year 2020 and 80% in one year's period. The market capitalisation of the micro-cap stock currently stands at Rs 483 crore.

With 0.03 lakh and 5 lakh shares trading on BSE and NSE, the stock has very high buying interest, as the pending bid quantity is higher than the stock's five-day average volume. There are only buyers and no sellers in the stock. Lakshmi Vilas Bank share price trades lower than its 5, 20, 50, 100 and 200-day moving averages.

Concerns over the private sector lender's financial health have been in limelight since last year. The capital adequacy ratio of Lakshmi Vilas Bank (LVB), is well below the minimum needed, at 3.46% against the regulatory minimum of 9%

This development has come months after the RBI rejected proposed amalgamation of Lakshmi Vilas Bank with Indiabulls Housing Finance (IHF) in October 2019, without citing any specific reason.

This came after the apex bank placed the private lender under the prompt corrective action (PCA) framework, due to spike in bad loans, lack of sufficient capital to manage risks and a negative return on assets for two consecutive years.

SBI Cards IPO: Finalisation of allotment today, here's how to check status

Share Market LIVE: Sensex rises 300 points, Nifty at 10,530; YES Bank, RIL top gainers

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close