Further, resignation of Supriya Prakash Sen, director of the bank, too, dented investors' sentiment.
Meanwhile, in a bid to allay the concerns of shareholders and customers, LVB issued a public notice on Tuesday, October 1, stating that the restrictions imposed by the RBI under PCA had no connection with the FIR filed by the Economic Offences Wing (EOW). The EOW had registered the FIR based on a complaint by Religare Finvest Ltd (RFL).
It said that it was initiating appropriate action against RFL, its directors and others for criminal defamation, malicious prosecution and causing disrepute to the bank and directors.
Till 09:46 am, a combined 20,726 shares had changed hands and there were pending sell orders for 2.1 million shares on the BSE and NSE. In the past three-months, the share price of LVB has more-than-halved, as against a 5 per cent decline in the benchmark index.