A series of declines in crisis-hit Lakshmi Vilas Bank (LVB) continued for the fifth consecutive trading session on Monday. There is a lot of negative news about the bank, due to which investors are selling its shares. LVB shares have fallen 48 per cent in five trading sessions. On Monday, the bank’s stock fell 10 per cent to Rs 8.10 on the BSE and discounted the lower circuit. The bank’s stock has fallen to its one-year low.
On the National Stock Exchange, the bank’s share fell 10 per cent to Rs 8.10 and touched the lower circuit. The bank’s stock has fallen 48.24 per cent in five trading sessions on BSE. Last week, on Tuesday, the government had imposed a limit on the withdrawal with several restrictions on LVB. At the same time the bank’s board was also dissolved. Withdrawal limit from the bank has been fixed at Rs 25,000 per depositor.
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Explain that after PMC and Yes Bank, the customers of a cooperative bank of Laxmi Vilas Bank Maharashtra are facing trouble. The Reserve Bank has raised the withdrawal limit from Lakshmi Vilas Bank to Rs 25 thousand per customer. Earlier last year, the withdrawal limit was imposed by the RBI in PMC and Yes Bank, which was initially kept at just one thousand rupees and later increased to 50 thousand rupees. If you are also planning to keep your deposits in small banks due to the lure of high interest, then you can be careful or else you may get into trouble.