September 27, 2019 / 5:24 AM / 21 days ago

India's Lakshmi Vilas Bank slumps as directors face fraud charges

BENGALURU, Sept 27 (Reuters) - Shares of Lakshmi Vilas Bank dropped nearly 5% 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 Ltd.

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% weaker on Friday. (Reporting by Derek Francis in Bengaluru, Editing by Sherry Jacob-Phillips)

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