Lakshmi Vilas Bank is not doing good at the present time. RBI imposed a moratorium on the bank. And that it was not soon when shares of the same tank 20%. After this, shares of the bank were in the lower circuit. And the price of the share was Rs 12.40 per share. The bank was struggling as a lender. Because the deposits were much less and the withdrawals very increasing day by day. After this moratorium of 30 days is imposed. And this bank will also in the coming future merge with the DBS Bank India. DBS is a bank in Singapore. And DBS India is a subsidiary of the same.
The moratorium is now till 16 December 2020. And the stocks were locked at Rs 12.45. This was down by 19.94 percent in comparison to the last close.
Now, people can only withdraw Rs 25,000 from savings and current accounts. And the expenditure on any item can be Rs 50,000 per month only. The financial position of the Lakshmi Vilas Bank was not well for the last three years. As it was incurring losses continuously.
Lakshmi Vilas Bank has an organization of 563 branches and stores of Rs 20,973 crore.
RBI has likewise selected TN Manoharan, previous Non-Executive Chairman of Canara Bank, as the Administrator under Section 36ACA(2) of the Banking Regulation Act, 1949 with impact from Tuesday, the moneylender said in a trade recording to the BSE.
In its assertion, the RBI said that DBS Bank India will get extra capital of Rs 2,500 crore forthright, to help credit development of the consolidated element.
Official Statement Regarding Lakshmi Vilas Bank
“Owing to a comfortable level of capital, the combined balance sheet of DBIL would remain healthy after the proposed amalgamation, with CRAR at 12.51 percent and CET-1 capital at 9.61 percent, without taking into account the infusion of additional capital,” the central bank said.