Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Indiabulls Hits Over Five-year Low, Rattled by Lakshmi Vilas Bank Merger Concerns, Probe

Indiabulls Managing Director Gagan Banga on Monday tried to assuage investors, saying the Reserve Bank of India's action on Lakshmi Vilas Bank 'does not shut the door on the merger'.

Reuters

Updated:October 1, 2019, 1:33 PM IST
facebookTwitterskypewhatsapp
Indiabulls Hits Over Five-year Low, Rattled by Lakshmi Vilas Bank Merger Concerns, Probe
Image for representation

Bengaluru: Indiabulls Housing Finance Ltd's shares extended their slide on Tuesday and hit a more than five-year low, as remarks from the mortgage lender following a tide of negative news failed to assuage investors.

This comes as the company stares at a potential fall-through in its merger with Lakshmi Vilas Bank Ltd, analysts said.

Private-sector lender Lakshmi Vilas Bank is the latest to face struggles in an already troubled banking sector, with the central bank taking regulatory action last week for high level of bad loans and lack of sufficient capital to manage risks, among others.

Indian police have also started probing Lakshmi Vilas Bank's directors for alleged misappropriation of funds.

Indiabulls Managing Director Gagan Banga on Monday tried to assuage investors, saying the Reserve Bank of India's action on Lakshmi Vilas Bank "does not shut the door on the merger".

Shares in Indiabulls, which traded at 1,440 rupees at their peak in January last year, gave up early gains on Tuesday to fall as much as 11.8% to 225.65 rupees, their lowest since March 2014.

The stock logged its worst ever daily loss on Monday with a 34% drop, and has lost over 70% this year as of last close.

An Indian court has also ordered a probe into Indiabulls on allegations of illegalities, violations and siphoning committed by its promoters, subsidiaries and their promoters, reports said. Indiabulls has denied the allegations.

"If the company (Indiabulls) continues to face headwinds from negative sentiment, it may potentially face challenges raising fresh funds," Macquarie Research said in a note.

The banking industry, which is going through a tumultuous time plagued by issues including high levels of bad loans, took a big hit last year after a major infrastructure conglomerate collapsed, straining liquidity in the sector.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 51.40 8.44
Reliance 1,416.35 1.42
Indiabulls Hsg 231.20 16.80
Zee Entertain 250.20 -5.39
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
HDFC AMC 2,882.20 6.11
Yes Bank 51.40 8.44
Indiabulls Hsg 231.50 17.42
Reliance 1,415.30 1.37
IRCTC 779.20 7.57
Top Gainers
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.28
Adani Ports 421.70 3.07
Grasim 746.50 3.03
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.31
Maruti Suzuki 7,318.15 2.74
Power Grid Corp 202.55 2.45
NTPC 121.00 2.02
Top Losers
Company Price Change %Gain
Zee Entertain 250.20 -5.39
Tata Motors 136.85 -1.90
Eicher Motors 20,275.90 -1.05
Bajaj Auto 3,087.05 -0.79
Hindalco 187.40 -0.74
Company Price Change %Gain
Tata Motors 136.70 -1.05
Bajaj Auto 3,088.80 -0.69
Bharti Airtel 383.25 -0.65
ICICI Bank 437.75 -0.64
Axis Bank 709.20 -0.19

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results