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NSE suspends trading in Lakshmi Vilas Bank stock

The Central government on November 25 has sanctioned the final scheme of amalgamation between the crisis-hit lender and DBS Bank India, which is the wholly owned subsidiary of DBS Bank Singapore

twitter-logoBusinessToday.In | November 26, 2020 | Updated 14:17 IST
NSE suspends trading in Lakshmi Vilas Bank stock
Further, all the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India from November 27

Shares of the cash-strapped lender Lakshmi Vilas Bank (LVB) were suspended from trading on November 26, 2020 from NSE.

National Stock Exchange said in a statement that trading in shares of the lender will be suspended from November 26. "Customers, including depositors of the Lakshmi Vilas Bank will be able to operate their accounts as customers of DBS Bank India with effect from November 27, 2020. Consequently, the moratorium on the Lakshmi Vilas Bank will cease to be operative from that date," said Lakshmi Vilas Bank in a regulatory filing on NSE.

The Central government on November 25 has sanctioned the final scheme of amalgamation between the crisis-hit lender and DBS Bank India, which is the wholly owned subsidiary of DBS Bank Singapore.

"DBS Bank India is making necessary arrangements to ensure that service, as usual, is provided to the customers of the Lakshmi Vilas Bank," RBI added.

Post the merger, there will be no further restrictions on the depositors regarding the withdrawal of their deposit. As part of the amalgamation plan, DBS India will infuse fresh capital of Rs 2,500 crore into LVB.

The Reserve Bank of India had said the amalgamation of the LVB with DBS India will come into force from 27 November and the moratorium imposed on the lender will be removed on the same day.

Further, all the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India from November 27.

RBI had earlier superseded the board of LVB on November 17 following the imposition of a moratorium on the private sector lender.

Share of the lender hit a 52-week high of Rs 25.18 and a 52-week low of Rs 6.95.

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