Lakshmi Vilas Bank under Moratorium by RBI
Published On: Wednesday, November 18, 2020 | By: Team KnowMyStock
Shares of Lakshmi Vilas Bank was locked in 20 per cent lower circuit in the early trade on November 18 after Reserve bank of India has the Bank under a moratorium with effect from November 17 6 pm till December 16, 2020, and capped deposit withdrawals by customers to Rs 25,000. The Reserve Bank of India (RBI) in the draft scheme of amalgamation has said that the shares or debentures of the Lakshmi Vilas Bank, listed in any stock exchange shall stand delisted upon the merger with DBS Bank India “On and from the appointed date, the entire amount of the paid-up share capital and reserves and surplus, including the balances in the share/securities premium account of the transferor bank, shall stand written off,” the draft scheme said. In this merger shareholder of LVB will not get any benefit, After looking at continuous withdrawal of deposits, erosion of net worth, and escalation asset quality issues RBI took the right step to prevent interest of depositor and financials market.
We believe a merger would be beneficial for DBS bank as it would be able to grow business in the south that has business and individual route to Singapore.
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