India Financials

Saumya Agarwal

Equity Bottom-Up

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Corrigenda: There is an error in this Insight. Please note the change.
Correction: LVB’s paid-up share capital, reserves and surplus will be written off and the shares and debentures shall stand de-listed. Therefore, the pro-forma net worth will be Rs 85 Bn instead of the Rs 92 Bn mentioned in the Insight.
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In what appears to be a remarkable life-saving move for the distressed Lakshmi Vilas Bank, the RBI announced a draft scheme for the merger of Lakshmi Vilas Bank (LVB) with DBS India. RBI also placed the troubled bank under Moratorium effective immediately, for one month, till Dec 16,2020.
LVB had been desperately scouting for a buyer, to raise capital, after posting losses for 3 consecutive years which saw its net worth erode markedly. However, LVB’s earlier proposal to merge with India bulls Housing Finance was rejected by the RBI in 2019 and its recent talks with Clix Capital turned out to be inconclusive.


Corrigenda: There is an error in this Insight. Please note the change.
Correction: LVB’s paid-up share capital, reserves and surplus will be written off and the shares and debentures shall stand de-listed. Therefore, the pro-forma net worth will be Rs 85 Bn instead of the Rs 92 Bn mentioned in the Insight.


In what appears to be a remarkable life-saving move for the distressed Lakshmi Vilas Bank, the RBI announced a draft scheme for the merger of Lakshmi Vilas Bank (LVB) with DBS India. RBI also placed the troubled bank under Moratorium effective immediately, for one month, till Dec 16,2020.
LVB had been desperately scouting for a buyer, to raise capital, after posting losses for 3 consecutive years which saw its net worth erode markedly. However, LVB’s earlier proposal to merge with India bulls Housing Finance was rejected by the RBI in 2019 and its recent talks with Clix Capital turned out to be inconclusive.

Lakshmi Vilas Bank Gets a Mighty Savior- To Be Merged with DBS Bank India