After writing off the entire equity share capital of Lakshmi Vilas Bank (LVB) as part of the scheme of amalgamation with DBS Bank India, the Reserve Bank of India ( RBI) has directed the bank to also write off tier-2 bonds worth around Rs 320 crore.
“The Reserve Bank of India, vide their letter dated 26th November 2020 has advised the need to fully write-down the Series VIII, Series IX and Series X Basel-III complaint Tier-2 Bonds before the amalgamation comes into effect from the Appointed date i.e., 27th November 2020,” read an exchange filing.
Moneycontrol had earlier in the day reported that the RBI is likely to make such a move.
