The government has placed LVB under one-month moratorium.
Shares of Lakshmi Vilas Bank continued to face selling pressure for the sixth consecutive day and have tanked over 53% during the period amid negative reports around the company.On Tuesday, the stock plunged 9.88% to ₹ 7.30 — its lower circuit limit as well as one year low — on BSE. At NSE, it plummeted 9.88% to ₹ 7.30 — its lowest trading permissible limit for the day. Since last Tuesday (November 17), the stock has tanked 53.35% on the BSE.The government has placed Lakshmi Vilas Bank (LVB) under one-month moratorium, superseded its board and capped withdrawals at ₹ 25,000 per depositor.The Hindu Explains | What is a bank moratorium, and when does it come into play? 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.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.
A letter from the Editor
Dear subscriber,Thank you!Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.Suresh Nambath