Reported by: banking|Updated: November 30, 2020
Lakshmi Vilas Bank now stands formally amalgamated with DBS Bank India. DBS Bank India in a statement said the amalgamation came into effect on 27 November under the special powers of the Government of India and Reserve Bank of India under Section 45 of the Banking Regulation Act, 1949, India. It said the amalgamation provides stability and better prospects to Lakshmi Vilas Bank’s depositors, customers and employees following a period of uncertainty. The moratorium imposed on the bank has been lifted from 27 November and banking services were restored immediately with all branches, digital channels and ATMs functioning as usual. The statement added that customers can continue to access all banking services and the interest rates on savings bank accounts and fixed deposits are governed by the rates offered by the erstwhile Lakshmi Vilas Bank till further notice. All Lakshmi Vilas Bank’s employees will continue in service and are now employees of DBS Bank India on the same terms & conditions of service. The statement also said the DBS team is working closely with Lakshmi Vilas Bank colleagues to integrate the latter’s systems and network into DBS over the coming months. Once the integration is complete, customers will be able to access a wider range of products and services, including access to the full suite of DBS digital banking services which have won multiple global accolades.
It said the DBS Group will inject Rs 2,500 crore (SG$ 463 million) into DBS Bank India to support the amalgamation and for future growth, which will be fully funded from DBS Group’s existing resources. Surojit Shome, CEO of DBS Bank India, said the amalgamation has enabled DBS Bank India to provide stability to Lakshmi Vilas Bank’s depositors and employees. It also gives DBS Bank India access to a larger set of customers and cities where the bank does not currently have a presence.