Lakshmi Vilas Bank under moratorium; RBI proposes merger with DBS

Withdrawals capped at Rs 25,000 till Dec 16; finances see steady decline as NPAs mount

The Reserve Bank of India (RBI) on Tuesday proposed to merge private sector lender Lakshmi Vilas Bank (LVB) with the India subsidiary of Singapore’s DBS Bank, even as LVB was put under moratorium for at least a month by the government.  

This is a draft merger proposal, and the final decision will be taken by the RBI after inputs and objections from members, depositors, and creditors of the banks, the central bank said on its website.   

According to an industry expert, DBS makes logical sense from the systemic point of view. “RBI has been telling foreign banks to incorporate