Lakshmi Vilas Bank’s shares plunge 9% on Q2 loss, auditors’ concern

Mumbai, Nov 9 (SocialNews.XYZ) Shares of Lakshmi Vilas Bank slumped nearly 9 per cent on Monday to hit an intra-day low of Rs 14.20 per share.

Around 12 pm, its shares on the BSE were trading at Rs 14.50, lower by 7.05 per cent from its previous close.

The drop in share prices comes after the company on Saturday reported a net loss of Rs 397 crore for the July-September period, compared with Rs 357 crore during the same period last fiscal.

Further, its auditors also said that the bank's sustenance as a going concern is dependent on its ability to improve liquidity, asset quality, and capital base.

In the bank's July-September earnings, the auditors said that as per the opinion of the bank, based on their internal assessment and the likely capital infusion, the lender will be able to realise its assets and discharge its liabilities in its normal course of business and hence the financial results have been prepared on a going- concern basis.

"The said assumption of going concern is dependent upon the bank's ability to achieve improvements in liquidity, asset quality and solvency ratios, augment its capital base and mitigate the impact of Covid-19. Thus, a material uncertainty exists that may cast a significant doubt on the bank's ability to continue as a going concern," they said as per the bank's regulatory filing.

"However, the bank opines that there are mitigating factors to such uncertainties," the filing said.

Source: IANS