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Lakshmi Vilas Bank, Syndicate Bank plunge to 52-week low as RBI slaps heavy fines

There were no buyers for the stock and pending orders accumulated to about 3 lakh shares.

ETMarkets.com|
Oct 15, 2019, 11.21 AM IST
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BCCL
Lakshmi-Vilas-Bank-
The scrip traded at its lower circuit at Rs 22.05.
Strict Reserve Bank of India penalties dented the investor sentiment on the counters of Lakshmi Vilas Bank and Syndicate Bank on Tuesday, causing their shares to plumb 52-week lows in Mumbai trading.

Lakshmi Vilas Bank, which is already under the PCA framework, tanked 5 per cent as RBI slapped Rs 1 crore penalty for “non-adherence to guidelines on IRAC norms and divergence with respect to two NPA accounts aggregating to Rs 169.50 crore for the financial year ended 2017. The scrip traded at its lower circuit at Rs 22.05. There were no buyers for the stock and pending orders accumulated to about 3 lakh shares.

RBI put Lakshmi Vilas Bank under the prompt corrective action (PCA) framework in September due to high bad loans and insufficient capital. The PCA framework is aimed at improving performance and does not impact normal day-to-day operations of the bank, RBI said.

RBI slapped a Rs 75 lakh fine on Syndicate Bank for delay in the reporting a fraud to RBI and for upfront disbursal of housing loans in cases of incomplete/under-construction/greenfield housing projects. Shares of Syndicate Bank traded 2 per cent lower at Rs 24.04. They hit a 52-week low during the session at Rs 24.

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