Has the LVB merger with DBS Bank been completed? What about the Madras High Court asking DBS Bank to set aside funds for LVB shareholders?
Answer
Answer
DBS Group of Singapore has confirmed that it had completed its takeover of distressed Lakshmi Vilas Bank. This will help DBS shift from a predominantly digital presence in India to having hundreds of branches. LVB has a 94-year history in India.
DBS Bank will infuse Rs.2500 crore into LVB capital to keep it up and running after deteriorating asset quality led to the bank floundering with negative net worth. Rebranding of all LVB branches into DBS branches and ATMs will be part of the deal.
DBS has confirmed that it will continue to employ some 4000 of LVB staff. However, the bank did not comment on the HC decision to set funds aside for compensation to equity shareholders. Obviously, that is not part of their deal with the government and that is what the bank will abide by.