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CARE Revises Lakshmi Vilas Bank Ratings, Stock Slumps

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Rating agency CARE has revised the rating on Lakshmi Vilas Bank's unsecured redeemable non-convertible subordinated Lower Tier II bonds to BB- (Under Credit Watch with Developing Implications, from BB-/Negative.

The stock of Lakshmi Vilas Bank has slumped another 10 per cent in trade today, and has lost as much as 60 per cent in the last few trading sessions.

Investors do not see much value in the stock of Lakshmi Vilas Bank given that if the amalgamation with DBS Bank goes through they are unlikely to get any money. The draft amalgamation clearly states that the shares would be delisted without any obligation on the bank to buy the shares, which would be eventually written off. This has prompted investors to sell the stock, and a further fall is also likely.

While some shareholders have opposed the amalgamation and delisting, one needs to wait and watch what the RBI approves.

CARE Revises Lakshmi Vilas Bank Ratings, Stock Slumps
 
Read more about: lakshmi vilas bank care
Story first published: Monday, November 23, 2020, 11:05 [IST]
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