Dhanlaxmi Bank tanks over 20% on AIBOC allegations: Report
Shares of Dhanlaxmi Bank Ltd tanked over 20% in trade on Tuesday to touch their 52-week low of Rs 54.40 after AIBOC raised red flag over operations of Dhanlaxmi Bank, reports ET Now.
By ET Online |
NEW DELHI: Shares of Dhanlaxmi Bank Ltd tanked over 20% in trade on Tuesday to touch their 52-week low of Rs 54.40 after AIBOC raised red flag over operations of Dhanlaxmi Bank, reports ET Now.
“The All-India Bank Officers Confederation (AIBOC) has alerted the Reserve Bank of India ( RBI) that the bank has manipulated accounts and provisioning, has a mismatch in asset-liability resources, maintains poor capital adequacy ratio and has huge dependence on call money borrowing,” according to the report.
“Dhanlaxmi Bank’s factual position is not stated in the balance sheet of the bank,” said GD Nadaf of AIBOC in an interview with ET Now. According to Nadaf, the bank’s profit has been inflated by the existing management and is unlikely the bank will survive for the next three years.
The company’s share touched their intra-day low of Rs 54.40 in trade today on the BSE. At 01:22 p.m., the company’s shares were trading 13.4% lower at Rs 62.00.
Analysts Call: Rajat Bose, rajatkbose.com
The stock slipped below Rs 69.25, which is at a fresh 52-week low, and it should not be bought at the current levels. All the moving averages, such as 50-day, 100-day and 200-day are sloping down and the stock does not seem to suggest that immediately there is going to be a reversal.
If the stock manages to cross Rs 76-77 kind of levels, only then there will be a technical ‘Buy’ signal, otherwise it is best avoided.
CK Bose of Growth Avenues Asset Advisors
The stock is trading near its support zone and the momentum on the downside is quite substantial. Any rally in the stock should be used to exit from the counter by the shareholders.
“The All-India Bank Officers Confederation (AIBOC) has alerted the Reserve Bank of India ( RBI) that the bank has manipulated accounts and provisioning, has a mismatch in asset-liability resources, maintains poor capital adequacy ratio and has huge dependence on call money borrowing,” according to the report.
“Dhanlaxmi Bank’s factual position is not stated in the balance sheet of the bank,” said GD Nadaf of AIBOC in an interview with ET Now. According to Nadaf, the bank’s profit has been inflated by the existing management and is unlikely the bank will survive for the next three years.
The company’s share touched their intra-day low of Rs 54.40 in trade today on the BSE. At 01:22 p.m., the company’s shares were trading 13.4% lower at Rs 62.00.
Analysts Call: Rajat Bose, rajatkbose.com
The stock slipped below Rs 69.25, which is at a fresh 52-week low, and it should not be bought at the current levels. All the moving averages, such as 50-day, 100-day and 200-day are sloping down and the stock does not seem to suggest that immediately there is going to be a reversal.
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If the stock manages to cross Rs 76-77 kind of levels, only then there will be a technical ‘Buy’ signal, otherwise it is best avoided.
CK Bose of Growth Avenues Asset Advisors
The stock is trading near its support zone and the momentum on the downside is quite substantial. Any rally in the stock should be used to exit from the counter by the shareholders.
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