Lakshmi Vilas Bank merger with DBS Bank approved by Cabinet
In a major development for the beleaguered Lakshmi Vilas Bank (LVB), its merger with the Singapore-based DBS Bank has received an approval from the Cabinet. The issue came up for discussion before the cabinet today. Lakshmi Vilas Bank share price has been heading downhill, falling by over 55 per cent over the last 7 trading sessions
In a major development for the beleaguered Lakshmi Vilas Bank (LVB), its merger with the Singapore-based DBS Bank has received an approval from the Cabinet. The issue came up for discussion before the cabinet today. Lakshmi Vilas Bank share price has been heading downhill, falling by over 55 per cent over the last 7 trading sessions. After, the news broke out the stock prices have seen a spike from the lower levels. At 3:05 pm, the stock of LVB was trading at Rs 7.65 on NSE, up by almost 5 per cent from the previous close.
The news about Lakshmi Vilas Bank merger with the DBS Bank have been doing the rounds for quite some time now. The bank has been in difficulty with the banking regulator - Reserve Bank of India (RBI) recently imposing restrictions on the bank.
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The falling Lakshmi Vilas Bank share price created uncertainty and fuelled further selling pressure for the seventh consecutive day and that was why it had fallen by over 55 per cent during the period amid negative reports surrounding the company.
On Wednesday, Lakshmi Vilas Bank share price tanked 4.79 per cent to Rs 6.95 -- its lower circuit limit as well as one-year low -- on BSE, PTI reported.
On NSE, it plummeted 4.79 per cent to Rs 6.95 -- its lowest permissible trading limit for the day.
Since last Tuesday (November 17), the stock has tanked 55.59 per cent on the BSE, the report said.
The government has placed LVB under one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.
The step was taken on the advice of the Reserve Bank of India, in view of the declining financial health of the private sector lender.
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Lakshmi Vilas Bank is the third bank to be placed under moratorium since September last year after the cooperative bank PMC in 2019 and private sector lender Yes Bank this March. While Yes bank has successfully been revived under the guidance of State Bank, the PMC resolution is still a far cry.
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