Lakshmi Vilas Bank locked at lower circuit

Shares of Lakshmi Vilas Bank tanked nearly 5 per cent intraday in Thursday's session after the lender announced the resignation of its CEO Parthasarathi Mukherjee.

Mr. Mukherjee submitted his resignation to the Board of Directors on Wednesday, citing personal reasons. The stock was locked at lower price band of Rs. 38.75, down 4.91 per cent on the BSE.

Lakshmi Vilas Bank has also informed that the Board has approved the fund raising proposal on Wednesday.  The Board of Directors have considered and approved, the increase in the authorized share capital of the Bank from Rs. 500 crore divided into 50,00,00,000 equity shares of Rs. 10/- each, to Rs. 650 crore divided into 65,00,00,000 equity shares of Rs. 10/- each.

 The board has approved raising of funds by way of issuance of equity shares or such other eligible security, for an aggregate amount not exceeding Rs. 1,000 crore. Also, the Board has approved the raising of funds by way of issuance of bonds, non - convertible debentures and / or such other debt securities, in one or more tranches, for an aggregate amount not exceeding Rs. 500 crore.

The Bank has also approved the notice of the ensuing 92nd Annual General Meeting of the Bank to be held on 27th September 2019 and the same will be issued to the shareholders of the Bank.

Shares of Lakshmi Vilas Bank had opened at Rs. 38.85 as compared to the previous close of Rs. 40.75. The stock had hit an intraday high of Rs. 39.35.