Shares of Lakshmi Vilas Bank slumped further and fell 10 per cent to hit a new 52-week low value in early trade on Friday as investor sentiment remained cautious.
Also listen to this podcast
This is also the fourth consecutive session of loss for the Lakshmi Vilas Bank (LVB) stock as investor sentiment was spooked after the government placed the lender under a one-month moratorium and superseded its board.
On BSE, the shares plunged 9.55 per cent to hit a lower circuit limit of Rs 9. On NSE the scrip was locked in the lower circuit of Rs 9 by declining 10 per cent. Shares of the lender were trading at 52-week low values on the exchanges.
On Tuesday, the government placed Lakshmi Vilas Bank under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.
The step was taken by the government on the advice of the Reserve Bank, in view of the declining financial health of the private sector lender.
T N Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of the bank. Besides, the central bank has also placed in the public domain a draft scheme of amalgamation of Lakshmi Vilas Bank with DBS Bank.
LVB 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.
Meanwhile, Capri Global Holdings, a public shareholder of the lender sold shares worth Rs 2.54 crore on Wednesday through a bulk deal on BSE. The shares were picked up by Besseggen Infotech LLP, the data showed.