Customers of Lakshmi Vilas Bank could continue to receive all banking services, and interest rates and fixed rates have not changed at present, said by DBS Bank this Monday.
DBS Bank India Ltd (DBIL) now owns Lakshmi Vilas Bank (LVB), is now a wholly-owned subsidiary of DBS Group Holdings Ltd. The merger came into effect on Nov 27 under Section 45 of the Banking Regulation Act, 1949.
The merger provides better stability and expectation for LVB investors, customers, and employees after a period of uncertainty. On Nov 27, The suspension on LVB was removed, and the banking services were restored, and all the ATMs operating normally.
All LVB employees will continue to work and are now DBIL employees with the same terms and conditions of employment under LVB, he adds.
The Indian arm of DBS Singapore said its team was working closely with LVB partners to integrate LVB programs and network into DBS soon.
Once the whole integration process is completed, customers would be allowed to access a wide range of products and services, including access to a complete suite of digital banking services that have received numerous world awards, in addition.
The bank said it was very well invested and its cash flow rating (CAR) would remain above the regulatory requirements even when combined.
In addition, DBS Group will invest Rs. 2,500 crore (SGD 463 million) in DBIL to fund future consolidation and growth. This will be funded fully by using the existing DBS resource.
Since 1994, DBS has resided in India and transformed its Indian operations into a wholly-owned company, DBIL, in March’19.
LVB is the second-largest private bank after the Bank Yes Yes which has experienced severe weather this year. In March, the scarce currency was put under penalty.
The government has saved Yes Bank by asking the state-owned State Bank of India to deposit Rs.72 million and take 45% of the bank.