What went wrong with Lakshmi Vilas Bank? | Case Study on Lakshmi Vilas Bank

Описание: In the last couple of years, we have seen major disruptions in the banking space in India. After the fiasco of PMC bank and Yesbank, there is another bank in limelight. It is Lakshmi Vilas Bank.
The Union Ministry of Finance has placed Lakshmi Vilas Bank under moratorium for 30 days till December 16, capping the withdrawal limit at Rs 25,000 for customers. It means the depositors can’t take out more than Rs 25,000 till 16 december. Although, RBI has assured depositors that their interest will be protected.
While superseding the bank's Board, the RBI has announced a draft scheme for amalgamation of Lakshmi Vilas Bank and DBS Bank India. DBS bank is a Singapore based multinational bank.
With the moratorium, the share price of Lakshmi Vilas Bank has eroded significantly. In the last 15 days, the share price of Lakshmi Vilas Bank has dropped from Rs 15.5 to Rs 8. That’s a fall of ~50%.

In the last 5 years, the share price has fallen from the high of Rs 189 to current level of Rs 8. That’s a fall of 95%.

So in this video, we will try to figure out what went wrong with Lakshmi Vilas Bank.

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