MUMBAI : The Reserve Bank of India (RBI) on Tuesday announced the merger of Lakshmi Vilas Bank (LVB) with the wholly-owned subsidiary of DBS Bank in India soon after it imposed a one-month moratorium on the private lender and capped deposit withdrawals at ₹25,000. This is the third bank after Punjab and Maharashtra Co-operative (PMC) Bank, Yes Bank that has been put under a moratorium in recent times. DBS Bank India Ltd (DBIL) is a wholly owned subsidiary of DBS Bank Ltd, Singapore, which in turn is a subsidiary of Asia’s leading financial services group, DBS Group Holdings Limited and has the advantage of a strong parentage. “The financial position of Lakshmi Vilas Bank Ltd. (the bank) has undergone a steady decline with the bank incurring continuous losses over the last three years, eroding its net-worth. The bank, RBI said, is also experiencing continuous withdrawal of deposits and low levels of liquidity.

Source: Mint November 17, 2020 14:03 UTC