LVB DBS MERGER
A HC ruling raises hopes of recovery for LVB bondholders
The tier-2 bonds have a loss absorbency feature, which means that if a bank fails, its tier-2 bondholders will absorb any losses ahead of its depositors. LVB had reported about ₹3,000 crore in accumulated losses, one-fourth of its loan book had turned sour, and tier-1 capital had turned negative.
Madras HC orders RBI to conduct comprehensive asset valuations for DBS and Lakshmi Vilas Bank
Madras High Court has directed RBI to reevaluate DBS Bank India and LVB pre-amalgamation, influencing share value/write-off decisions within four months, in response to bondholders' suit, highlighting transparency and fairness for stakeholders.
Supreme Court quashes Religare Finvest's plea against DBS Bank India
The original petition, a civil suit at the Delhi High Court (HC) and an FIR with the Economic Offences Wing of the Delhi Police, were filed against Lakshmi Vilas Bank (LVB), which later merged with DBS India on a direction from the Reserve Bank of India (RBI). After the merger, RFL sought to implead DBS in the criminal complaints along with former LVB officials.
Supreme Court quashes criminal proceedings against DBS Bank, says allowing prosecution will be travesty of justice
The alleged offence happened before the Lakshmi Vilas Bank (LVB) merged with the wholly-owned subsidiary of Singapore-based DBS Bank in India in November 27, 2020. A bench of Justices S Ravindra Bhat and Aravind Kumar noted that the criminal proceedings in question were attributable to the actions of four officials of Lakshmi Vilas Bank before its amalgamation with DBS Bank.
DBS looks to Lakshmi Vilas Bank customers to widen deposit, lending base
CEO Surojit Shome said the bank plans to expand retail assets led by loan against gold and loans to small businesses that are currently serviced by LVB's branches. More importantly, DBS plans to expand its deposits especially low cost current and savings accounts (CASA) by tapping the two million LVB customers.
Post LVB merger, DBS Bank India reports higher net profit for FY21; NPAs zoom
DBS Bank India, which bailed out LVB and in the process increased its network, had reported a post tax net of Rs 111 crore in FY20.
- Go To Page 1
Bombay and Madras high courts adjourn LVB-DBS merger cases
On Tuesday, the division bench of Justice Nitin Jamdar and Justice Milind Jadhav heard lawyers for all the parties and have adjourned the case for eight weeks.
IDBI Trusteeship sends another appeal to RBI, requests to compensate LVB bondholders
The IDBI trustee services in its letter to the RBI has also stated that bond holders have been requesting to either provide for paying-off their bonds or transferring it to DBS Bank as per the servicing schedule.
Bombay High Court to hear petitions challenging LVB-DBS merger on December 22
The division bench of Justice Nitin Jamdar and Justice Milind Jadhav after hearing the lawyers said the matter will be kept for direction on December 22.
RBI, DBS move Supreme Court, want all LVB merger cases transferred
In a hearing before the Madras High Court on Monday senior counsel Mukul Rohatgi appearing for DBS Bank submitted that the matter of transfer of all cases will be mentioned before the Supreme Court during this week itself and it is likely to be taken up before the Supreme Court closes for Winter Holidays on December 18.
DBS Bank India gets Rs 2,500 cr capital support from parent for LVB merger
DBIL said it is well-capitalised, and its capital adequacy ratios (CAR) remains above regulatory requirements after the amalgamation.
DBS (India) Bank wants Madras HC single bench to hear LVB matter
The division bench of the Madras high court last week passed an interim order protecting shareholders of LVB and said no prejudicial action should be taken against them.
Investors are dumping their bonds at a discount to avoid an LVB-like fate
Brokerages ET spoke with said that they have received several requests from investors wanting to exit AT1 and tier 2 exposures of smaller banks at 15-20% discount.
LVB bondholders gear up for court battle
A petition could be filed in the Madras High Court this week, said people that are part of the plan, joining shareholders and promoters that have challenged the merger that’s extinguished their stocks.
Lakshmi Vilas Bank writes down tier 2 bonds worth Rs 320 crore
The development took place Thursday, a day before LBV's amalgamation with DBS Bank India, even as promoters and shareholders of the old generation lender moved Bombay High against the decision of extinguishing their equity investment.
LVB to become DBS Bank India, cash withdrawal allowed from Friday
Following the approval, DBS Group Holdings — Singapore's biggest bank — will take over Lakshmi Vilas Bank in a deal pushed by the RBI. This also marks the first instance when India has turned to a foreign entity to bail out a struggling domestic bank.
LVB shares rise after Cabinet approves merger with DBS India
On November 17, the RBI unveiled a draft merger scheme under which DBS will infuse Rs 2,500 crore regulatory capital into the cash-strapped LVB. The regulator wants the entire process to be completed by December 16.
Lakshmi Vilas Bank: Has ease of credit availability in our system encouraged fraud?
Clean and sensible prudential banking norms are the only way to create good institutions. We have stellar examples that stand up to this basic truth. Until we can make that the norm we need rules, supervision, monitoring, disclosure, penalties, and a whole hoard of timely actions we don’t have a great history of taking. Which is why the quiet merger of LVB feels right.
RBI unlikely to change stance in LVB-DBS merger
The erosion of LVB’s capital and the fact that bad loans comprised a quarter of its total loans mean that the central bank was left with very little choice in the matter, experts said.
Proposed LVB-DBS merger a remarkable job: RBI board member
On Tuesday, the government imposed a 30-day moratorium on Lakshmi Vilas Bank (LVB), restricting cash withdrawals at Rs 25,000 per depositor, and simultaneously announced a scheme to merge the cash-strapped lender with DBS Bank India.
What Lakshmi Vilas Bank account customers should do post imposition of moratorium?
If you are a customer of LVB, you would be understandably worried about the future of the bank and more importantly, your own money in the bank. So, let us look at what account holders should do and what they can expect once the merger with DBS India is completed.
Bonanza? A possible rerating brings cheer for LVB bondholders
“The bank could at least be upgraded to investment grade after the merger with a strong backing from a foreign lender,” a senior executive associated with a rating business told ET. Rating companies covering the bank are now closely monitoring the takeover.
With Lakshmi Vilas deal, DBS faces potential culture clash
LVB, facing mounting bad loans and governance issues and a failure to secure capital, is set to be folded into DBS's Indian subsidiary under a plan proposed by India's central bank, which took control of the 94-year old Chennai-based lender on Tuesday, citing a "serious deterioration" in its finances.
RBI ready to meet deposit shortfall at LVB, says exec
‘Haven’t Sought Funds From Regulator, Can Cater To Lakshmi Vilas Bank’s Depositors Internally’
Merger with LVB to strengthen DBS Bank's India biz: Moody's
Moody's said India and Indonesia are DBS' core foreign markets where it is actively growing its digital banking services, and had more than 3 million digital bank customers in these two markets at the end of 2019.
DBS-LVB Deal: A hint to foreign banks, grim signal for shareholders
The sudden announcement on Tuesday evening to impose a moratorium that restricts LVB customers from withdrawing money for a month is ostensibly aimed at facilitating the `deal’ and saving a failed bank.
Clix Capital may apply for banking licence after failed merger with Lakshmi Vilas Bank
Clix Capital has been in talks with the LVB management since June and had also submitted a non-binding agreement in October. Clix had proposed to invest Rs 1,700 crore in equity plus fundraising to meet growth capital requirements.
Confident LVB moratorium will be lifted within one month, says RBI-appointed administrator
Tamil Nadu based LVB was put under moratorium on Tuesday evening through a government notification. A few minutes later the RBI issued a draft scheme of amalgamation with DBS Bank India, the wholly owned subsidiary of DBS Bank Ltd, Singapore's largest lender.
Load More
