The National Stock Exchange (NSE) said in a statement that trading in shares of the ailing Lakshmi Vilas Bank will be suspended from Thursday, 26 November 2020.
"Members of the Exchange are hereby informed that the trading in equity shares of Lakshmi Vilas Bank Limited NSE 4.79 % shall be suspended w.e.f November 26, 2020 (i.e. closing hours of trading on November 25, 2020) on account of gazette notification dated November 25, 2020 issued by Department of Financial Services, Ministry of Finance," NSE said.
This comes after the Cabinet approves DBS' takeover of Lakshmi Vilas Bank and RBI subsequent announcement that the amalgamation of the bank with DBS Bank India will be effective from 27 November. The moratorium placed on LVB on 17 November will also cease on Friday.
"The amalgamation will come into force on the appointed date, i.e., November 27, 2020. All the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India with effect from this date," RBI said adding that all customers of LVB will now become customers of DBS Bank India.
On 17 November, the RBI announced a draft merger scheme for the 94-year old LVB, wherein DBS India will infuse Rs 2,500 crore regulatory capital into the cash-strapped. The entire paid-up share capital of the bank will be written off upon merger, causing deposits of LVB to be absorbed by books of DBS India.
Shares of the troubled bank have tanked over 55% in value since 17 November.