Mumbai (Maharashtra) [India], November 25 (ANI): Equity shares of Lakshmi Vilas Bank (LVB) shall not be available for trading from November 26, Bombay Stock Exchange said on Wednesday.
This comes after the Union Cabinet gave its approval to the amalgamation of Lakshmi Vilas Bank Limited (LVB) with the wholly-owned subsidiary of Singapore-based DBS Bank in India.
On November 17, the Reserve Bank of India had unveiled a draft scheme to amalgamate private sector lender LVB with DBS Bank India Ltd (DBIL). The decision followed soon after the RBI imposed a one-month moratorium on the private lender and capped deposit withdrawals at Rs 25,000. The step was taken on the advice of the RBI in view of the private sector bank's deteriorating financial health.
"The government has asked the Reserve Bank of India (RBI) to take action against the people in the management who drive banks to the brink of collapse," Union Minister Prakash Javadekar said while announcing the cabinet's decision today.
After inviting suggestions and complaints from the public, RBI prepared the scheme for the bank's amalgamation. With the approval of the scheme, LVB will be amalgamated with DBIL from the appointed date, and with this, there will no further restrictions on the depositors regarding the withdrawal of their deposits.
The speedy amalgamation and resolution of the stress in LVB is in line with the government's commitment to a clean banking system while protecting the interests of depositors and the public as well as the financial system. (ANI)