Private sector lender Lakshmi Vilas Bank Ltd will be amalgamated with DBS Bank India Ltd, said by RBI in a statement, right after the announcement of the order of moratorium.
The RBI statement said, “DBIL is a wholly-owned subsidiary of DBS Bank Ltd, Singapore, which in turn is a subsidiary of Asia’s leading financial services group, DBS Group Holdings Limited, and has the advantage of a strong parentage.”
Additionally, the statement said, “Although the DBIL is well capitalised, it will bring in additional capital of Rs. 2500 crore upfront to support credit growth of the merged entity. Owing to a comfortable level of capital, the combined balance sheet of DBIL would remain healthy after the proposed amalgamation, with CRAR (Capital to Risk Asset Ratio) at 12.51% and CET-1(Common Equity Tier 1) capital at 9.61%, without taking into account the infusion of additional capital.”