Lakshmi Vilas Bank to be amalgamated with DBS Bank India

Cabinet approves RBI scheme aimed at minimizing restrictions on withdrawal faced by depositors

GN Bureau | November 25, 2020


#RBI   #DBS Bank India Limited   #Lakshmi Vilas Bank Limited   #Banking   #union cabinet  
(GN Photo)
(GN Photo)

The scheme of amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL) has been approved by the union cabinet on Wednesday.

On November 17, to protect depositors’ interest and in the interest of financial and banking stability, on RBI’s application under section 45 of the Banking Regulation Act, 1949, LVB had been under moratorium for a period of 30 days. In parallel, RBI, in consultation with government, superseded the board of directors of LVB and appointed an administrator to protect the depositors’ interest.

After inviting suggestions and objections from the public and stakeholders, RBI prepared and provided a scheme for the bank’s amalgamation for the government’s sanction, well in advance of end of the period of moratorium so that restrictions on withdrawal faced by the depositors are minimised. With the approval of the scheme, LVB will be amalgamated with DBIL from the appointed date, and with this there will no further restrictions on the depositors regarding withdrawal of their deposits, an official release said.

DBIL is a banking company licenced by RBI and operating in India through wholly owned subsidiary model, DBIL has a strong balance-sheet, with strong capital support and it has the advantage of a strong parentage of DBS, a leading financial services group in Asia, with presence in 18 markets and headquartered and listed in Singapore. The combined balance-sheet of DBIL would remain healthy even after amalgamation and its branches would increase to 600.

The speedy amalgamation and resolution of the stress in LVB is in line with Government's commitment to a clean banking system while protecting the interests of depositors and the public as well as the financial system.

 

Comments

 

Other News

Targeting root causes of cancer with green policies

The Budget 2025 was splashed across headlines with its innumerable numbers and policies, but lurking behind the balance sheets is a threat that it has not accounted for yet — the silent, merciless clutches of cancer. The World Health Organisation (WHO) states that it remains one of humanity`s mo

Congress needs course correction: Prithviraj Chavan

Prithviraj Chavan, a former Maharashtra chief minister and veteran Congress leader, feels his party has probably failed to provide a viable alternative to the government, and it needs a course correction. “I do acknowledge that the Congress party may have failed to provide the alternat

Major haul of illegal arms and ammunition in Manipur

In a significant breakthrough, Manipur Police, in a joint operation with Central Armed Police Forces (CAPFs), the Indian Army, and Assam Rifles, recovered a massive cache of illegal arms, ammunition, and explosives during coordinated search operations across five valley districts in the intervening night o

PM visits crash site, meets the injured

Prime minister Narendra Modi on Friday visited the Air India flight crash site in Ahmedabad to assess the situation first-hand. He met officials and emergency response teams working tirelessly in the aftermath of the disaster. He also condoled the loss of numerous lives in the tragic air accident. He con

Air India flight crashes in Ahmedabad

The Air India flight to London crashed in Ahmedabad within munites of the take-off Thursday afternoon. There were 232 passengers and 10 crew members aboard, and reports suggest there was slim chances of anyone surviving. The Boeing 787 Dreamliner crashed and exploded in a fireball barely out

Cabinet approves two multitracking projects of Railways

The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, on Wednesday approved two projects of the railways ministry with a total cost of Rs. 6,405 crore. These projects include:  1. Koderma – Barkakana Doubling (133 Kms): The project sec

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter