Abstract

Banks play a pivotal role in India's economic development. They sustain the country’s GDP growth through turning people’s static money into capital for investment and thus directing cash flow via dynamic market systems. Bank deposits provide secured and fixed return unlike the share market that holds higher risk of investment and offer a variable return which is uncertain. Whenever an individual or a company is at financial crisis, Banks lend their hands and offer loans and help them as much as possible to cut down the financial burden. But on the other hand, when the financial health of a bank itself is very weak which in turn will certainly affect the entire movement of the banking sector in the stock market and further that would lead to unreliable market circumstances. In this paper, we will be analyzing the major reasons behind the complete wash out of Lakshmi Vilas Bank from the Indian Stock Market and try to figure out the alarming indicators so as to be more cautious in the mere future to avoid such financial breakdown caused due to the bankrupted scenario.

Highlights

  • Stock market constitutes businesses, investors, and trading of stocks and shares

  • In this paper, using technical analysis and fundamental analysis as a tool, we analyze the data obtained from the stocks of Lakshmi Vilas Bank Private Limited, to find “The Major Reasons behind the whitewash off Lakshmi Vilas Bank from the Indian Stock market” and understand the major factors influencing the dynamic of this process

  • The values have increased initially till 2018 to Rs.[40,42,92,260] and has reduced down. (ii) The investments of the company has been increased from FY – 16 to FY – 18 and has declined towards FY -20. (iii) The Net Profit of the company has gradually decreased from FY- 16 and has drip down completely in FY-20, which shows the functioning of the company and the trouble encountered. (iv) The EPS has decreased from Rs.10.05 in FY – 16 to Rs. -25.16 in FY – 20, which clearly shows the fall of the company. (v) The Net Cash flow decreases to a negative trend, from Rs.[4,98,903] in FY – 16 to a negative cash flow of Rs. -32,89,884 in FY20

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Summary

INTRODUCTION

Investors, and trading of stocks and shares. Stock and shares represent value of the capital poured into businesses by investors. Banks catalyze wealth generation by transforming static money into capital for investment, lending loans to entrepreneurial ventures, providing secure returns to fixed deposits and play a critical role in augmenting the economic growth. As Banks play a crucial role in structuring the economy, invariably stock market has a significant position. In this paper, using technical analysis and fundamental analysis as a tool, we analyze the data obtained from the stocks of Lakshmi Vilas Bank Private Limited, to find “The Major Reasons behind the whitewash off Lakshmi Vilas Bank from the Indian Stock market” and understand the major factors influencing the dynamic of this process

PRELIMINARIES
FUNDAMENTAL ANALYSIS OF LAKSHMI VILAS BANK
CASH FLOW STATEMENT
TECHNICAL ANALYSIS OF LAKSHMI VILAS BANK
CONCLUSION
Methods

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