Govt approves merger of Lakshmi Vilas Bank with DBIL

Quote

Advertisement

The 20 lakh depositors and Rs 20,000 crore deposits are now fully secured. They need not worry. They should not rush, their deposits are in the best hand.

Prakash Javadekar, Union Environment Minister

Box:

Rs2,480-cr FDI by ATC Asia Pacific okayed

New Delhi: The government on Wednesday approved ATC Asia Pacific buying about 12 per cent stake in ATC Telecom Infrastructure for Rs 2,480 crore. The cumulative FDI would now be Rs 5,417.2 crore. This shows that global community sees India as a robust market with strong growth, Javadekar said. PTI

New Delhi, November 25

The government on Wednesday approved the merger of crisis-ridden Lakshmi Vilas Bank (LVB) with the DBS Bank India Ltd (DBIL) with Union minister Prakash Javadekar asserting that there would be no further restrictions on the depositors regarding withdrawals other than the current moratorium.

The minister also assured depositors that Rs 20,000 crore of deposits with the LVB were fully secured and they should not worry. DBIL, a wholly-owned subsidiary of Singapore-based DBS Bank Ltd, had a total regulatory capital of Rs 7,109 crore as of June 2020.

On November 17, on the advice of the RBI the government had imposed a 30-day moratorium on the crisis-ridden LVB restricting cash withdrawal at Rs 25,000 per depositor.

The RBI simultaneously placed in public domain a draft scheme of amalgamation of LVB with DBIL. The RBI had also superseded the board of the bank. The Union Cabinet has approved the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL), Javadekar told reporters, adding the decision will provide comfort to 20 lakh depositors and protect the services of 4,000 employees. — PTI