LVB Amalgamation With DBS Bank: On November 27, Laxmi Vilas Bank merged with Singapore-based DBS Bank’s India unit (DBIL). RBI has saved the bank from drowning along with the merger plan of Lakshmi Vilas Bank stuck in cash crisis. Since 27 November, all the branches of Lakshmi Vilas Bank Limited are functioning as branches of DBS Bank India Limited. The question arises that when Laxmi Vilas Bank is now DBS Bank, then the interest on bank FD or savings account will also be like DBS Bank. When will this change in interest come into effect.
What is the whole deal?
According to the RBI plan, Singapore government-backed DBS will invest Rs 2500 crore in Lakshmi Vilas Bank. Under this deal, DBS India will get a franchise of $ 1.6 billion in 563 branches, 974 ATMs and retail businesses. At the same time, the equity of 94-year-old Lakshmi Vilas Bank will also be completely lost. The entire deposit of the bank will go to DBS India. Under this, through the branches of Lakshmi Vilas Bank, DBS Bank will have access to its home, personal loan and small scale industry loan customers.
How much interest on FD
The merger will end the worries of Lakshmi Vilas bank depositors and provide stability. With the merger, the moratorium on the bank has also been removed from November 27. LVB customers have started getting all banking facilities. As far as the interest rate on bank FD and savings account is concerned, there will be no change in it till further notice. The interest offered by Laxmi Vilas Bank will not change till further notice. However, all bank employees will now be considered employees of DBS Bank. They will be able to work according to the terms and conditions fixed towards LVB.
DBS Bank India Limited CEO Surjit Shom says that the merger of LVB has enabled us to provide stability to depositors and employees of LVB. It also gives us access to a large group of customers and cities where we do not have a presence. We look forward to working with our new partners to become a strong banking partner for LVB customers.