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Lakshmi Vilas Bank Slumps As Directors Face Fraud Charges

Earlier this year, Lakshmi Vilas said it will merge operations with housing finance firm Indiabulls Housing Finance (IBHF) in a share-swap deal.

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Shares of Lakshmi Vilas Bank dropped nearly 5 per cent on Friday, after the country’s Economic Offences Wing (EOW) filed a report against directors of the Indian private-sector lender alleging various counts of fraud.

The directors face charges of cheating, breach of trust, misappropriation and conspiracy, the Chennai-based bank said in a statement filed to the stock exchanges on Thursday, adding that it was considering taking “appropriate legal measures.”

The EOW’s report was based on a complaint filed by Religare Finvest.

Earlier this year, Lakshmi Vilas said it will merge operations with housing finance firm Indiabulls Housing Finance Ltd (IBHF) in a share-swap deal. The proposed merger is now under regulatory scrutiny, according to local media.

IBHF shares were trading 3 per cent weaker on Friday.

(Reuters)


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