Connect with us

Hi, what are you looking for?

Trending

Moratorium on Lakshmi Vilas Bank, withdrawal of only Rs. 25,000 till Dec 25

Lakshmi vilas bank

After the recent news of Yes Bank, now RBI has imposed moratorium on Lakshmi Vilas Bank. The withdrawal are now capped at ₹25000 crore. As it thinks over LVB merger with DBS Bank India.
RBI has placed Lakshmi Vilas Bank under moratorium for the next one month.

The cash withdrawal restricted at ₹25000 per depositor. Even if the depositor has multiple accounts withdrawal of ₹25000 only is possible.

Reasons behind moratorium


Financial condition of Lakshmi Vilas Bank has deteriorated a lot. RBI because of the following reasons impoased moratorium:

  • Bank is unable to raise adequate capital.
  • There is a steady decline over the last three years.
  • The bank is experiencing continuous withdrawal.
  • The financial health of the bank may worsen.
  • It will be in the absence of any viable strategic plan.
  • Low levels of liquidity.
  • Declining advances and mounting non performing assets.
  • Serious governance issues and practices.
  • Nearly one fourth of the banks advances has turned into bad assets.
  • NPAs stood 25.4 % of its advances as of June 2020.

RBI assures depositors


Depositors have been assured that their interest shall be protected even the withdrawal has been capped to ₹25,000 per depositor, as per the RBI statement.
After the proposed amalgamation of DBS India and LVB, the balanced sheet would be healthy. This is assured by RBI.

DBS Bank India proposed amalgamation

DBS bank


RBI has superseded Lakshmi Vilas Bank’s board. Reserve Bank of India took this step. Now Mr.Manoharan is its administrator as per new appointment. He is the former non executive chairman of Canara Bank. This will continue till 30 days.
According to a draft scheme of amalgamation, LVB and DBS Bank India limited (DBIL) will come together.

According to a statement made by DBS Bank India, it will provide stability and better prospects to Lakshmi Vilas Bank’s depositors, employees and customers.
It also said that DBS will injet rupees 2500 crore INR to DBIL only with the approval of the scheme.

The aim of the Capital infusion is to trigger credit growth at LVB. This is going to be as soon as possible.

Manoharan

RBI to issue this final merger draft on November 20.

The Bank’s Stats

  • Founded in 1926.
  • A group of 7 progressive businessman in Karur founded it.
  • Second private sector bank.
  • This is after YES Bank.
  • Gone into rough weather during in 2020.
  • Fifth Indian financial firm.
  • Collapsed over a span of 30 months after IL&FS, DHFL, Yes bank and PMC Bank.
  • Presently, LVB is under a very weak situation.
  • Depositers are too worried about their interests and future.

Bank’s official site

https://www.lvbank.com/

Avatar
Written By

Garima has knowledge about SEO and experience in content writing. Garima is passionate about content writing, video editing, website designing, and learning new skills. Content writing has always been there in her potential. Reach her at garima@liveakhbar.in

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Release Dates

आज रात 12:30 बजे से पूरे देश में यह सुविधा शुरू हो गई है कि बैंकों का रियल टाइम ग्रॉस सेटेलमेंट सिस्टम यानी आरटीजीएस...

Want updates of New Shows?    Yes No