Cabinet approves the Scheme of Merger/ Amalgamation of Lakshmi Vilas Bank (LVB) with DBS Bank India Limited. Also, Govt. notifies the Scheme, which shall be effective from 27th Nov. 2020, i.e. branches/ customers of the Lakshmi Vilas Bank Ltd. shall become branches/ customers of the DBS Bank India Ltd. from this date.
Cabinet has approved the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL). RBI has also 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.
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.
MoF, GOI Press Release dt. 25/11/2020: Cabinet approves Scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Limited
RBI Press Release dt. 25/11/2020: Laxmi Vilas Bank Branches to Operate as DBS Bank Branches from 27/11/2020
MoF, GOI Notification dt. 25/11/2020: Scheme of Amalgamation of Lakshmi Vilas Bank (LVB) with DBS Bank India Limited notified
Laxmi Vilas Bank placed under Moratorium; to merge with DBS Bank