Shares of Lakshmi Vilas Bank Ltd (LAKSHVILAS-534690) hit their lower circuit of 5 percent for the second consecutive trading session. The Reserve Bank of India put the bank under Prompt Corrective Action framework. The bank clarified that PCA does not mean moratorium for the bank.
There are no restrictions on operations by depositors. Bank can also undertake lending activities to all segments except corporates and other stressed and high risk sectors.
Besides, the lender clarified on Religare Finvest’s complaint with Economic Offences Wing that mere registration of FIR against the bank does not mean anything at this stage. “The Bank is committed to cooperate with the investigating agencies and regulatory authorities apparently in order to bring out the malicious attempts of Religare Finvest to mislead the public to cover up massive fraud indulged by their own promoters/ employees/ group companies,” according to its statement.
