LAKSHMI VILAS BANK BROUGHT UNDER MORATORIUM
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For Information.
Lakshmi Vilas Bank brought under moratorium; RBI proposes merger with DBS Bank India
Borrowers can withdraw above Rs 25,000 only for unforeseen expenses including medical treatment, education etc
Lakshmi Vilas Bank has been brought under moratorium effective 6 pm, November 17 until December 16. The moratorium has been imposed on the basis of application submitted by RBI under Sec 45 of BR Act. Payments to creditors has also been capped at Rs 25,000 during the moratorium.
Borrowers can withdraw above Rs 25,000 only for unforeseen expenses including medical treatment, education etc, the Central Government said in a statement.
RBI proposes merger with DBS Bank India
Meanwhile, RBI announced a draft scheme of amalgamation of Lakshmi Vilas Bank with DBS Bank India Ltd (DBIL). DBIL, a wholly owned subsidiary of DBS Bank Ltd, Singapore (DBS), which is a subsidiary of Asia's leading financial services group, DBS Group Holdings Limited, has the advantage of a strong parentage, the apex bank said in a press note.
"DBIL has a healthy balance sheet, with strong capital support. As on June 30, 2020, its total Regulatory Capital was Rs 7,109 crore (against capital of Rs 7,023 crore as on March 31, 2020). As on June 30, 2020, its GNPAs and NNPAs were low at 2.7 percent and 0.5 percent respectively; Capital to Risk Weighted Assets Ratio (CRAR) was comfortable at 15.99 percent (against requirement of 9 percent); and Common Equity Tier-1 (CET-1) capital at 12.84 percent was well above the requirement of 5.5 percent," the RBI statement read.
The Reserve Bank has also invited suggestions and objections, if any, from members, depositors and other creditors of transferor bank (LVB) and transferee bank (DBIL), on the draft scheme, which may be sent to the address mentioned in the "Notice". The draft scheme has also been sent to transferor bank and transferee bank for their suggestions and objections. The suggestions and objections will be received by Reserve Bank up to 5 pm on November 20, 2020.
PM
Soumitra Mukherjee
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