Lakshmi Vilas Bank (LVB) is now merging with DBS Bank India Limited (DBIL), the wholly owned subsidiary of DBS Group Holdings Ltd. “All employees of Lakshmi Vilas Bank will continue in service and are now employees of DBS Bank India Limited in the same terms and conditions of service according to Lakshmi Vilas Bank, “said DBS Bank India.
The merger scheme is under the special powers of the Government of India and the Reserve Bank of India under Section 45 of the Banking Regulation Act 1949, India, and came into force on November 27, 2020 .
The moratorium imposed on LVB was lifted on November 27, 2020 and banking services were immediately restored with all branches, digital channels and ATMs operating as usual. LVB customers can continue to access all banking services.
Interest rates on savings bank accounts and fixed deposits are governed by the rates offered by the former Lakshmi Vilas Bank until further notice, DBS Bank said.
“The DBS team is working closely with LVB colleagues to integrate LVB’s systems and network into DBS over the next several months. Once the integration is complete, customers will be able to access a broader range of products. and services, including access to the full suite of DBS Digital Banking Services that have won multiple global accolades, “DBS India.
“DBS Bank India Limited (DBIL) is well capitalized and its capital adequacy ratios (CAR) will remain above regulatory requirements even after the merger,” the bank said.
In addition, DBS Group will inject ₹Rs 2,500 crore in DBIL to support the merger and for future growth.
DBS has been in India since 1994 and converted its Indian operations into a wholly owned subsidiary (DBIL) in March 2019.
Surojit Shome, Chief Executive Officer of DBS Bank India Limited, said: “The LVB merger has enabled us to bring stability to LVB depositors and employees. It also gives us access to a broader set of clients and cities where we currently have no presence. We look forward to working with our new colleagues to become a strong banking partner for LVB’s clients. “
.
