Lakshmi Vilas Bank share price tanks 9%; Sebi questions firm on Rs 800 crore dispute

Lakshmi Vilas Bank share price dropped nearly 9 per cent on Wednesday with the stock posting its biggest intraday percentage loss since February 28. The stock tanked as much as 8.7 per cent to rs 102 on the BSE in intraday trade. It settled at Rs 105.35, down 5 per cent.

The fall came after market regulator, The Securities and Exchange Board of India (SEBI), asked the private lender why it did not disclose a dispute with Religare Finvest, a unit of Religare Enterprises Ltd, in its regulatory filing for rights share issue launched in January, according to a report from Economic Times.

The stock has fallen 29 per cent so far this year as of today’s close. Meanwhile, Religare Enterprises share price gained 4 per cent to Rs 46.65 on the BSE. On a year-to-date basis, it is down 33 per cent. 

Lakshmi Vilas Bank claimed adjustment of a fixed deposit of about Rs 800 crore ($116.08 mln) deposited by Religare Finvest in 2016 and early 2017, towards a loan default made by companies belonging to Religare promoters, the ET report added.

In an emailed statement, the bank told Reuters that the matter is sub judice and that it “has acted in accordance with the relevant provisions of law and banking norms in disbursing the loans and recovering the same”.

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Meanwhile, the Sensex and Nifty fell for a second straight day on Thursday as investors turned cautious on the expiry of derivatives contracts, while the rupee hit a record low amid intensifying global trade war.

The broader NSE Nifty ended 0.77 per cent lower at 10,589.10, while the benchmark BSE Sensex closed 0.51 per cent lower at 35,037.64.