Tag: reservebankofindia

Shares of Mahindra & Mahindra (M&M) Financial Services tanked 14 percent to Rs 192.05 in Friday’s intra-day trade, after the Reserve Bank of India (RBI) directed the company to immediately cease any recovery or repossession activities via an outsource till further orders. In its order, the RBI also mentioned that the non-banking finance company may continue with recovery or repossession activities through its own employees. The directive comes days after external loan recovery agents of Mahindra Finance allegedly crushed a 27-year-old pregnant woman in Hazaribagh district in Jharkhand to death under a tractor. The agent was forcibly taking the vehicle away, financed by the company, for non-payment of dues, a senior police official had told PTI."This action is based on certain material supervisory concerns observed in the said NBFC, with regard to the management of its outsourcing activities," RBI said in a statement. Read more

Shares of Lakshmi Vilas Bank was locked in 20 per cent lower circuit in the early trade on November 18 after Reserve bank of India has the Bank under a moratorium with effect from November 17 6 pm till December 16, 2020, and capped deposit withdrawals by customers to Rs 25,000. The Reserve Bank of India (RBI) in the draft scheme of amalgamation has said that the shares or debentures of the Lakshmi Vilas Bank, listed in any stock exchange shall stand delisted upon the merger with DBS Bank India “On and from the appointed date, the entire amount of the paid-up share capital and reserves and surplus, including the balances in the share/securities premium account of the transferor bank, shall stand written off,” the draft scheme said. In this merger shareholder of LVB will not get any benefit, After looking at continuous withdrawal of deposits, erosion of net worth, and escalation asset quality issues RBI took the right step to prevent interest of depositor and financials market. Read more