Temasek Holdings eyes controlling stake in cash-strapped Lakshmi Vilas Bank

May rope in its banking arm DBS Bank India to co-invest

Temasek Holdings, the Singapore government’s investment company, has furthered its talks with Indian authorities to acquire a controlling stake in capital-starved Lakshmi Vilas Bank (LVB). 

According to persons aware of the development, Temasek has approached the corporate affairs and finance ministries for their approval to buy a 51 per cent stake, which will give it controlling rights in LVB. “Temasek already has an interest in several financial sector firms. Hence, it is seeking consent on whether it can take a controlling stake in one more Indian bank, which is LVB,” said one of the persons.

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