Is Lakshmi Vilas Bank Considered Underrated? and Journey and features of LVB
DBS has been accorded the "Safest Bank in Asia" award by Global Finance for 12 consecutive years from 2009 to 2020.. With effect from 27 November 2020, Lakshmi Vilas Bank (LVB) has been amalgamated with DBS Bank India Limited. The scheme of amalgamation is under the special powers of the Government of India and RBI under Section 45 of the Banking Regulation Act, 1949, India.
Lakshmi Vilas Bank Limited was an Indian private sector bank established in 1926 in Karur, Tamil Nadu. As of November 2020, the bank has 566 branches in 19 states and 1 union territory. On 27 November 2020, the bank was merged into the Indian subsidiary of DBS Bank.
Lakshmi Vilas Bank was founded in 1926 by a group of seven businessmen of Karur under the leadership of Shri V. S. N. Ramalinga Chettiar. Their objective was to cater to the financial needs of people in and around Karur who were occupied in trading businesses, industry and agriculture.
The bank was incorporated on 3 November 1926 under the Indian Companies Act, 1913, and obtained the certificate to commence business on 10 November 1926. Subsequent to the introduction of the Banking Regulations Act, 1949 and Reserve Bank of India as the regulator for the banking sector, the bank obtained its banking license from RBI on 19 June 1958, and on 11 August 1958, it became a 'scheduled commercial bank' signifying capability to operate as a full-fledged commercial bank.
The Lakshmi Vilas Bank is Not Underrated, actually, it is the most trusted by many customers around the Region.
Lakshmi Vilas Bank saw considerable expansion of its branch network during the period of 1961 to 1965 when the bank took over nine other banks. In 1974, the bank started expanding the branch network beyond Tamil Nadu to benefit from opportunities in the pan-Indian market.
Thus, branches were established in the neighbouring states of Andhra Pradesh, Karnataka and Kerala, important financial centres such as Mumbai, New Delhi and Kolkata as well as in other significant business centres in Maharashtra, Gujarat and Madhya Pradesh.
Meanwhile, the bank attained the status of Authorized Dealer in foreign exchange in 1976 enabling it to provide the full range of services to customers engaged in international trade and to overseas travellers.
Mechanization was introduced in the Administrative Office as early as 1977, and data processing and computerization began in right earnest in 1993 by the bank's own in-house team. Implementation of Core Banking Solution (CBS) was started in October 2006, and all of the bank's branches were migrated to CBS by March 2008.
On 5 April 2019, the board of Lakshmi Vilas Bank approved a merger of the bank with the country's second-largest housing finance company, Indiabulls Housing Finance Ltd.
Indiabulls shareholders will receive a 90.5% stake in the consolidated entity, to be called Indiabulls Lakshmi Vilas Bank, and LVB will receive the remaining 9.5%. The merged entity will create a net worth of ₹19,472 crores and a loan book of ₹1,23,393 crore for the nine months of FY1920. However, the plan was discarded after RBI refused to give approval.
On 17 November 2020, the Reserve Bank of India imposed a month-long moratorium on Lakshmi Vilas Bank due to a "serious deterioration" in the company's financial position.
Reserve Bank of India issued a notification vide which it declared that the financial position of Lakshmi Vilas Bank is not sufficient to pay off its depositors and a month moratorium was announced under which depositors are able to withdraw a limited amount of money.
"The financial position of Lakshmi Vilas Bank Ltd has undergone a steady decline with the bank incurring losses over the last three years, eroding its net-worth.
The absence of any viable strategic plan, declining advances and mounting non-performing assets (NPAs), the losses are expected to continue," the RBI said. On the same day, RBI presented a draft amalgamation scheme of LVB with DBS Bank India Limited; the merger would result in a subsequent write-off of paid-up share capital and delisting of LVB from all stock exchanges.
The moratorium was lifted and all branches of LVB started operating as branches of DBS Bank India from 27 November 2020. In addition, RBI asked the bank to write down around ₹316.80 crores of Tier-II bonds.
About Lakshmi villas Bank: From Lvbank.com With effect from 27 November 2020, Lakshmi Vilas Bank (LVB) has been amalgamated with DBS Bank India Limited.
The scheme of amalgamation is under the special powers of the Government of India and RBI under Section 45 of the Banking Regulation Act, 1949, India. DBS is a leading financial services group in Asia and is present across 18 countries.
With its extensive network of operations in Asia, DBS has been accorded the "Safest Bank in Asia" award by Global Finance for 12 consecutive years from 2009 to 2020.
DBS has been in India since 1994 and we converted our India operations to a wholly-owned subsidiary (DBS Bank India Limited) in March 2019 to expand our franchise and build greater scale. We were also ranked No 1 in India by Forbes in its 2020 list of the World’s Best Banks.
Note: please Comment Here for UPDATES and CORRECTIONS
Donate. Buy Us Coffee
Why news media is in crisis & How you can fix it.
India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises. But the news media is in a crisis of its own. There have been brutal layoffs and pay cuts. The best of journalism is shrinking, yielding to the crude prime-time spectacle. My digital news .in has very few young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here
NOTE: Please email us for updates and corrections, if you wish to publish articles like this you can send them to firstname.lastname@example.org or email@example.com or you can Directicle write Articles on our Site by registering https://mydigitalnews.in/register
Disclaimer: Mydigitalnews.in provides the content from various information sources ‘as is and the content to be used only for informational purposes and not responsible for the inaccuracy or deficiency of the provided information. Mydigitalnews. in have the right, at its sole discretion, to make modifications in any aspect of the provided information.
Mydigitalnews. in Internet site may contain links to other Internet sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites.