LVB customers to continue receiving interest at existing rates till further regulations

DBS Bank Ltd’s Indian Subsidiary clarified in a press release on Monday that Lakshmi Vilas Bank (LVB) customers will continue receiving interest rates on saving bank accounts and fixed deposits as it was offered before the merger, till any further notice. Subsequently, all LVB employees will continue to hold their services and be employees of DBS Bank India under the same terms & conditions of service as under LVB.

The Singapore-based DBS bank’s Indian subsidiary merged LVB with itself which is effective beginning 27 November under an amalgamation scheme drafted and cleared by the government and the Reserve Bank of India.

RBI had stated at the time of amalgamation that around all the 3000 LVB employees working in around 500 branches will be accommodated in DBS post the hurried merger. “The DBS team is working closely with LVB colleagues to integrate LVB’s systems and network into DBS over the coming months,” the bank said.

“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,” the bank added in a press release.

As per the criteria of the LVB-DBS amalgamation scheme, the entire equity paid-up capital and Tier-II bonds of LVB will be written off. LVB was merged with DBS after the former plunged into a financial crisis and reported losses for at least 10 consecutive quarters. The bank had held talks with a few NBFCs for a deal but couldn’t secure the regulator’s approval. DBS had approached LVB for an agreement in 2018 to acquire a majority stake.

Lakhsmi Vilas Bank