Lakshmi Vilas Bank up 10% on reports DBS, Capri Global to invest; bk denies

Shares of Lakshmi Vilas Bank (LVB) were locked in the upper circuit of 10 per cent at Rs 16.50 on the BSE on Friday after the media reports suggested that the Singapore-based DBS Bank, Capri Global and Indostar Capital Finance were among the suitors for cash-strapped bank.

The trading volumes on the counter jumped nearly three-fold with a combined 452,963 shares changing hands on the NSE and BSE. There were pending combined buy orders for 1.76 million shares on both the exchanges at 01:29 pm.

According to a Business Standard report, capital-starved private sector lender Lakshmi Vilas Bank may soon have a suitor willing to pump money into it. According to sources, top executives at the Chennai-based bank submitted a list of potential investors to the Reserve Bank of India (RBI) on Wednesday, added report. CLICK HERE TO READ FULL REPORT

Meanwhile, Lakshmi Vilas Bank clarified that the Bank is not aware of any such interest shown by companies viz., DBS Bank India or lndostar Capital Finance or Capri Global or any other private sector bank as mentioned in the articles. The Bank hence denies the news articles pertaining to the same, it added.

The Bank made clarification with reference to news appeared in www.moneycontrol.com dated February 7, 2020 quoting "DBS, Indostar Capital among suitors for Lakshmi Vilas Bank as RBI plays matchmaker."

In October 2019, the stock of the private sector lender hit a record low of Rs 13.35 after the RBI rejected the proposed amalgamation of lndiabulls Housing Finance with the bank.

In the past 10 months, the stock has tanked 85 per cent, as compared to a 7 per cent rise in the S&P BSE Sensex till Thursday. It hit a 52-week high of Rs 97.35 on April 8, 2019.