Cabinet Approves Lakshmi Vilas Bank Merger With DBS-India
New Delhi: The Union Cabinet on Wednesday approved merger of Lakshmi Vilas Bank (LVB) with DBS Bank India Limited (DBIL). The Cabinet meeting was chaired by Prime Minister Narendra Modi.
The Reserve Bank of India had on 17 November proposed merger of LVB with DBIL, a wholly-owned subsidiary of DBS Bank. As part of the amalgamation, DBIL will infuse fresh capital of ₹2,500 crore into LVB.
With the merger approval, there will no further restrictions on the depositors regarding withdrawal of their deposits. 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 In parallel, RBI, in consultation with Government, superseded the Board of Directors of LVB and appointed an administrator to protect the depositors’ interest.
Cabinet chaired by PM@narendramodi has approved Scheme of amalgamation of Lakshmi Vilas Bank with Development Bank India Ltd. This will protect 20 lakh depositors and 4,000 employees, twitted Union Minister Prakash Javadekar.