LVB shareholders to ask RBI to reconsider stand on merger with DBS

The window to make representations to RBI from all manner of stakeholders ends on November 20

Shareholders of Lakshmi Vilas Bank (LVB) are to make a representation to the Reserve Bank on Thursday, seeking that their interests be looked at sympathetically. 

A legal battle, sources said, cannot be ruled out though a bad precedent was set when shareholders of Global Trust Bank (GTB) got nothing after it was merged with the Oriental Bank of Commerce (OCB) in 2004.

The draft scheme of merger of LVB with DBS Bank India states that the paid-up share capital, reserves and surplus of the private bank is to be written off. LVB will cease to exist after the merger and