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.