All Lakshmi Vilas Bank (LVB) customers will continue to get interest rates on savings bank accounts and fixed deposits as offered by the erstwhile LVB till further notice, DBS said in a press release on Monday.
Also, all LVB employees will continue in service and are employees of DBS Bank India on the same terms & conditions of service as under LVB,
The Singapore-based bank’s Indian subsidiary merged LVB with itself effective 27 November as per an amalgamation scheme drafted and cleared by the government and the Reserve Bank of India.
Even at the time of the amalgamation scheme, the RBI had said that all employees of LVB will be accommodated in DBS post the hurried merger. LVB had close to 3000 employees and around 500 branches.
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 said in the release.
According to LVB-DBS amalgamation scheme, the entire equity paid-up capital and Tier-II bonds of LVB will be written off. Some investors have moved courts against this decision.
LVB was merged with DBS after the former fell into a financial crisis and posted losses for at least 10 consecutive quarters. The bank held talks with a few NBFCs for a deal but couldn’t get the regulator’s approval.
DBS had approached LVB for a deal in 2018 to acquire a majority stake but the conditions put forward by the Singapore lender weren’t agreed by the RBI.
According to DBS’ press release, the bank has been present in India for 26 years, having opened its first office in Mumbai in 1994. DBS Bank India Limited is first among the large foreign banks in India to start operating as a wholly owned, locally incorporated subsidiary of a leading global bank, the bank said.DBS provides a range of banking services for large, medium and small enterprises and to individual consumers in India, the bank said.