LVB customers can continue to avail all banking services, interest rates: DBS Bank India
DBS has been in India since 1994 and converted its India operations to a wholly owned subsidiary (DBIL) in March 2019.
DBS has been in India since 1994 and converted its India operations to a wholly owned subsidiary (DBIL) in March 2019.
This latest development comes hours before the amalgamation of the Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd is to take effect today (Friday).
From November 27 (Friday) the 94-year-old Karur-headquartered LVB will cease to exist officially and be amalgamated with DBS Bank India Ltd.
Although the DBIL is well capitalised, it will bring in additional capital of Rs 2,500 crore upfront, to support credit growth of the merged entity.
The step was taken by the government, on the advice of the Reserve Bank, in view of the declining financial health of the private sector lender.
The step was taken by the government, on the advice of the Reserve Bank, in view of the declining financial health of the private sector lender.
On the BSE, the stock plunged 10 per cent to Rs 8.10, hitting its lower circuit limit as well as one year low.
The government on Tuesday placed Lakshmi Vilas Bank under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.
The US-based rating agency said it has always viewed the Indian government as highly supportive of the banking sector as it has consistently supported weak commercial banks by promoting the merger of distressed institutions with stronger lenders.
The step was taken by the government, on the advice of the Reserve Bank, in view of the declining financial health of the private sector lender.
