back Back
Seeking to raise capital? Seeking to invest? Click Here & Express your early interest to be a part of IBS Intelligence’s new fund initiative.

RBI proposes scheme for DBS to amalgamate Lakshmi Vilas Bank

By Edil Corneille

November 18, 2020

  • India
  • RBI
Share

RBI, Reserve Bank of India, DBS, Lakshmi Vilas Bank, DBILThe Reserve Bank of India (RBI), the country’s central bank, has announced a draft scheme to amalgamate Lakshmi Vilas Bank with DBS Bank India Ltd (DBIL). The proposed scheme of amalgamation is under the special powers of the Government of India and RBI under Section 45 of the Banking Regulation Act, 1949.

Lakshmi Vilas Bank has a 94-year history in India and is said to have an established retail and SME customer base, and a strong presence in South India.

DBS has been in India since 1994. In March 2019, to expand the franchise and build greater scale, the bank converted its India operations to a wholly-owned subsidiary, DBIL, which is now present in 24 cities across 13 states. DBIL is a wholly-owned subsidiary of DBS Bank Ltd, Singapore (DBS), which in turn is a subsidiary of Asia’s financial services group, DBS Group Holdings Limited.

The proposed amalgamation will provide stability and better prospects to Lakshmi Vilas Bank’s depositors, customers and employees following a time of uncertainty. 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.

The financial position of The Lakshmi Vilas Bank Ltd has undergone a steady decline with the bank incurring continuous losses over the last three years, eroding its net-worth, as mentioned by the RBI in a press release.

To support the amalgamation, DBS will inject INR 25 billion (SGD 463 million) into DBIL if the scheme is approved. This will be fully funded from DBS’ existing resources. The bank will await the final decision on the proposed scheme from the RBI and the Government of India and will announce further details at a later stage.

Previous Article

November 18, 2020

Paypal partners with Even to improve workforce financial health

Read More
Next Article

November 18, 2020

Sopra Steria announces agreement to acquire Fidor Solutions

Read More










IBSi Daily News Analysis

The Weekly Wrap

August 12, 2022

India

The Weekly Wrap: all you need to know by Friday COB | August 12th

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

August 12, 2022

Verdant Capital raises USD 10m of debt funding for Zeepay

Read More

August 12, 2022

Synctera announced the appointment of Yvette Butler to its Board of Directors

Read More

August 12, 2022

PayGround launches Payment Financing Solution on its platform

Read More

Related Reports

Sales League Table Report 2022

£1,500.00 / year

Know More
IBS Intelligence - Global Digital Banking Vendor & Landscape Report Q2 2022
Global Digital Banking Vendor & Landscape Report Q2 2022

£1,500.00 / year

Know More
IBS Intelligence - Wealth Management & Private Banking Systems Report Q2 2022
Wealth Management & Private Banking Systems Report Q2 2022

£1,500.00 / year

Know More
Global Transaction Banking Vendors and Landscape Report Q2 2022

£1,500.00 / year

Know More
IBS Intelligence - Treasury & Capital Markets Systems Report Q2 2022
Treasury and Capital Markets Systems Report 2022

£1,500.00 / year

Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2022