Dhanlaxmi Bank tanks 24% over 'poor financial health'

Shares of Dhanlaxmi Bank slid by as much as 24% in afternoon trade on the bourses today after the All-India Bank Officers Confederation (AIBOC) raised several questions about the lender's financial health.

Shares of the lender had opened on a strong note in the morning, but surrendered the gains thereafter, tumbling to a 52-week low on the Bombay Stock Exchange and the National Stock Exchange.

On the BSE, shares of the company tanked by 24.23% to a low of Rs 54.25, while on the NSE, they dropped by 24.05% to a low of Rs 54.30.

The AIBOC has raised issues relating to the financial health of the bank, besides operational irregularities.

"We have requested the RBI to conduct investigations relating to various aspects of the bank so that the interest of shareholders and depositors is protected," AIBOC General Secretary G D Nadaf told PTI.

He alleged that the bank has been indulging in window dressing of its accounts and not presenting the correct picture to shareholders.