Lakshmi Vilas Bank slips after EOW registers FIR

Lakshmi Vilas Bank fell 4.68% to Rs 36.65 after the Economic Offences Wing of the Delhi Police registered a case against the bank alleging misappropriation of Religare Finvest's fixed deposits held in the bank.

The Economic Offences Wing (EOW), Delhi has registered a first information report (FIR) upon the directors of board Lakshmi Vilas Bank (LVB), director LVB at Connaught Place, New Delhi among others, for cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy under the Indian Penal Code, 1860.

The FIR is based on a complaint filed by Religare Finvest (RFL) pertaining to adjustment of their deposits to the dues of RHC Holding & Ranchem. The same is received at bank's end on 25 September 2019. LVB said it is considering appropriate legal measures to counter the same.

RHC Holding is owned by Malvinder Mohan Singh and Shivinder Mohan Singh, former chairman & managing director of Ranbaxy Laboratories and current promoters of Fortis Healthcare, Religare Enterprises and other diversified businesses

Meanwhile, Indiabulls Housing Finance was down 2.70% to Rs 403.60. In early of April 2019, LVB announced its plan to merge with Indiabulls Housing Finance. The merger was approved by the Competition Commission of India (CCI) On 21 June 2019.

Meanwhile, the S&P BSE Sensex was up 4.13 points or 0.01% to 38,993.87.

On the BSE, 36307 shares were traded in the LVB counter so far compared with average daily volumes of 28 lakh shares in the past one quarter. The stock hit a high of Rs 37 and a low of Rs 36.55 so far during the day.

The stock hit a 52-week high of Rs 97.35 on 09 Apr 2019. The stock hit a 52-week low of Rs 34.95 on 09 Sep 2019.

LVB reported a net loss of Rs 237.25 crore in Q1 June 2019 over a net loss of Rs 123.87 crore in Q1 June 2019 over Q1 June 2018. Total income fell 14% to Rs 677.17 crore in Q1 June 2019 over Q1 June 2018.

LVB is a scheduled commercial bank.

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