Lakshmi Vilas Bank Ltd. branches will operate as DBS Bank India Ltd. branches from November 27, 2020. The development has come hours after the Cabinet announced that it has approved the merger of Lakshmi Vilas Bank Ltd. with DBS India. The government earlier in the day approved merger of crisis-ridden Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd (DBIL) and said there will be no further restrictions on withdrawal of deposits.
The Union Cabinet approved the merger of the LVB with DBS Bank India Limited, Union Minister Prakash Javadekar told reporters, adding the decision will provide comfort to 20 lakh depositors and protect the services of 4,000 employees.
"Cabinet approves Scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Limited; with this there will no further restrictions on the depositors regarding withdrawal of their deposits," the official spokesperson said in a tweet.
The government had earlier on November 17 on the advice of the RBI imposed a 30-day moratorium on the crisis-ridden LVB restricting cash withdrawal at Rs 25,000 per depositor.
Earlier today, shares of Lakshmi Vilas Bank faced selling pressure for the seventh consecutive day and tanked over 55 per cent during the period amid negative reports surrounding the company.
On Wednesday, the stock tanked 4.79 per cent to Rs 6.95 -- its lower circuit limit as well as one-year low -- on BSE. On NSE, it plummeted 4.
79 per cent to Rs 6.95 -- its lowest permissible trading limit for the day. Since last Tuesday (November 17), the stock has tanked 55.59 per cent on the BSE.