Lakshmi Vilas Bank Gains For The 4th Day On News Reports Of Potential Investors

Shares of Lakshmi Vilas Bank rose for the fourth straight trading session on Tuesday. The stock price jumped 10 percent to hit upper circuit of Rs 19.80.

Last week, a Business Standard report citing sources said that top executives of the Chennai-based lender have submitted a list of potential investors to the Reserve Bank of India (RBI) for approval on 5 February. IT said that the list included Singapore-based DBS Bank, lndostar Capital Finance and Capri Global.

Lakshmi Vilas Bank later in a stock exchange filing clarified that it is not aware of any such interest shown by these private sector players.

On Tuesday, an Economic Times report said that an official from US fund house Tilden Park Capital Management and senior members of Lakshmi Vilas had recently met with RBI to buy a "sizeable" stake in the capital-starved private lender.

LVB was placed under prompt corrective action (PCA) plan by RBI in September due to high level of bad loans, lack of sufficient capital to manage risks and negative return on assets for two consecutive years.

In the following month, RBI rejected LVB's planned merger with Indiabulls Housing Finance after examining the proposal for over six months.