The stock that crashed to a low of Rs 8.40 in April this year has now gained a whopping 285 per cent in just nine months to touch Rs 32 per share
Lakshmi Vilas Bank stock has lost 48.24% in four sessions
<p>Reserve Bank of India (RBI) on Tuesday announced that Lakshmi Vilas Bank had been placed under moratorium by the Union Ministry of Finance till December 16 this year. The decision by the central government, at the request of the RBI, was prompted by a "steady decline" in Lakshmi Vilas Bank's financial position over the last three years. Watch as Rajeev Dubey, Editor, Business Today explains the direct impact of the decision on bank customers.</p><p>Also Read: <a mce_href="https://www.businesstoday.in/sectors/banks/curbs-on-lakshmi-vilas-bank-what-it-means-for-depositors-banking-sector/story/422291.html" target="_blank" href="https://www.businesstoday.in/sectors/banks/curbs-on-lakshmi-vilas-bank-what-it-means-for-depositors-banking-sector/story/422291.html">Lakshmi Vilas Bank under moratorium: What does it mean for depositors?</a> </p>
LVB is a small bank and its failure won't significantly impact the banking sector, but it's the loss of confidence and trust in banking system that has escalated with this crisis
Lakshmi Vilas Bank stock opened 20% lower at Rs 12.40 against previous close of Rs 15.50
Lakshmi Vilas Bank's board has approved raising of up to Rs 500 crore through issuance of shares on rights basis to existing shareholders
The bank in June 2020 had inked a non-binding agreement with the Clix Group for amalgamation. Later, the parties extended the validity of the agreement to September 15 citing the Covid-19 lockdown.
Share of Lakshmi Vilas Bank touched an intraday high of Rs 18.2, rising up to 9.64%
The development came six months after the RBI rejected proposed amalgamation of Lakshmi Vilas Bank with Indiabulls Housing Finance
Lakshmi Vilas Bank share price opened 5% lower at Rs 25.65 compared to the previous close of Rs 27 on the BSE.
Indiabulls Housing Finance stock opened today with a loss of 6.79% to Rs 363, also its day's high. Later, the stock crashed 37.8% and touched an intraday low as well as fresh 52-week low of Rs 240.10, against the last closing price of Rs 389.45 on BSE