"At the same time, the proposed amalgamation will allow DBIL to scale its customer base and network, particularly in south India, which has longstanding and close business ties with Singapore."
DBS said it will await the final decision on the proposed scheme from RBI and the government of India, and will announce further details later. Lakshmi Vilas Bank has been put under a one-month moratorium from Nov 17 to Dec 16. In a statement, the RBI said that the financial position of Lakshmi Vilas Bank"has undergone a steady decline, with the bank incurring continuous losses over the last three years, eroding its net-worth".
It noted that the bank has not been able to raise adequate capital to address issues around its negative net-worth and continuing losses, and is experiencing continuous withdrawal of deposits and low levels of liquidity. Reuters reported that India's government said it had also temporarily capped withdrawals from Lakshmi Vilas Bank. Reuters added that the bank has been looking for a partner since last year amid surging bad loans that come on top of"governance issues".For daily updates on weekdays and specially selected content for the weekend. Subscribe to
dbsbank Unusual move for dbs to get involved in a very troubled bank although if it can steady the ship it does give it further scale in India✔️
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