Mumbai (Maharashtra) [India], November 25 (ANI): Following the Union Cabinet's approval for the amalgamation of Lakshmi Vilas Bank Limited (LVB) with the wholly-owned subsidiary of Singapore-based DBS Bank in India, the National Stock Exchange (NSE) said the bank's share trading will be suspended from November 26.
"Members of the Exchange are hereby informed that the trading in equity shares of Lakshmi Vilas Bank Limited NSE 4.79 % shall be suspended w.e.f November 26, 2020 (i.e. closing hours of trading on November 25, 2020) on account of gazette notification dated November 25, 2020, issued by Department of Financial Services, Ministry of Finance," NSE said in an official statement on Wednesday.
After the cabinet's approval, Reserve Bank of India (RBI) released a statement and said the amalgamation of LVB with DBS Bank will come into force from November 27 and the moratorium imposed on the crisis-ridden lender will be removed on that day.
"The amalgamation will come into force on the appointed date, i.e., November 27, 2020. All the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India with effect from this date," the RBI said.
On November 17, RBI had unveiled a draft scheme to amalgamate private sector lender LVB with DBS Bank India Ltd (DBIL). The decision followed soon after the RBI imposed a one-month moratorium on the private lender and capped deposit withdrawals at Rs 25,000. The step was taken on the advice of the RBI in view of the private sector bank's deteriorating financial health.
The speedy amalgamation and resolution of the stress in LVB is in line with the government's commitment to a clean banking system while protecting the interests of depositors and the public as well as the financial system. (ANI)