Lakshmi Vilas Bank is now amalgamated with DBS Bank India
By Edil Corneille
Lakshmi Vilas Bank (LVB) is now amalgamated with DBS Bank India Limited (DBIL), the wholly owned subsidiary of DBS Group Holdings Ltd. The scheme of amalgamation is under the special powers of the Government of India and the Reserve Bank of India (RBI) under Section 45 of the Banking Regulation Act, 1949, India, and came into effect on November 27, 2020. In November, the RBI had announced a draft scheme to amalgamate Lakshmi Vilas Bank with DBS Bank India Ltd (DBIL).
The amalgamation provides stability and better prospects to LVB’s depositors, customers and employees following a period of uncertainty. The moratorium imposed on LVB was lifted from 27 November 2020 and banking services were restored with all branches, digital channels and ATMs functioning as usual. LVB customers can continue to access all banking services. The interest rates on savings bank accounts and fixed deposits are governed by the rates offered by the erstwhile LVB till further notice. All LVB employees will continue in service and are now employees of DBIL on the same terms and conditions of service as under LVB.
The DBS team is working closely with LVB colleagues to integrate LVB’s systems and network into DBS over the coming months. Once the integration is complete, customers will be able to access a wider range of products and services, including access to the full suite of DBS digital banking services.
DBS Group will inject INR 25 billion (SGD 463 million) into DBIL to support the amalgamation and for future growth. This will be fully funded from DBS Group’s existing resources. DBS has been in India since 1994 and converted its India operations to a wholly owned subsidiary (DBIL) in March 2019.
Surojit Shome, CEO of DBS Bank India Limited said, “The amalgamation of LVB has enabled us to provide stability to LVB’s depositors and employees. It also gives us access to a larger set of customers and cities where we do not currently have a presence. We look forward to working with our new colleagues towards being a strong banking partner to LVB’s clients.”
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