Latest News | BIZ-STOCKS-LAKSHMI VILAS BANK LVB Shares Jump over 5 Pc After RBI Appoints Panel to Oversee Bank
Get latest articles and stories on Latest News at LatestLY. Shares of Lakshmi Vilas Bank (LVB) on Monday pared early losses to close higher by 5 per cent after the Reserve Bank of India approved appointment of three-member Committee of Directors (CoD) to run the daily affairs of the debt-ridden firm. The stock bounced back during the fag-end of the trade and gained 5.21 per cent to close at Rs 20.20 on the BSE.
New Delhi, Sep 28 (PTI) Shares of Lakshmi Vilas Bank (LVB) on Monday pared early losses to close higher by 5 per cent after the Reserve Bank of India approved appointment of three-member Committee of Directors (CoD) to run the daily affairs of the debt-ridden firm. The stock bounced back during the fag-end of the trade and gained 5.21 per cent to close at Rs 20.20 on the BSE.
During the day, it declined 5.72 per cent to Rs 18.10.
On the NSE, it rose by 5.21 per cent to close at Rs 20.20. During the day, it tanked 6.25 per cent to Rs 18.
After shareholders ousted seven directors of the board, the Reserve Bank of India has approved appointment of three-member CoD to run the daily affairs of LVB. This CoD will exercise the discretionary powers of MD (managing director) and CEO (chief executive officer) in the ad-interim, the bank said in a statement on Monday. The RBI on September 27 appointed the CoD composed of three independent directors Meeta Makhan, Shakti Sinha, and Satish Kumar Kalra, it said, adding that the committee will be headed by Meeta Makhan. On Friday, shareholders of LVB ousted seven directors, including its MD & CEO and auditors at the AGM. The truncated board sought to assuage investors stating that the bank's liquidity situation was comfortable and assured the depositors that their money was safe. "With Liquidity Coverage Ratio (LCR) of about 262 per cent as on September 27, against minimum 100 per cent required by RBI, the deposit-holders, bond-holders, account-holders and creditors are well safe guarded," the statement said. Lakshmi Vilas Bank will continue to share information on the developments in public domain as and when they materialise, and as required by applicable law, it added. The bank's troubles started after it shifted its focus to lend to large businesses from SMEs.
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(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)