DBS Bank India Limited (DBIL) on Friday said it has received capital infusion of Rs 2,500 crore from DBS Bank Limited, Singapore to support its amalgamation with Lakshmi Vilas Bank (LVB). The scheme of amalgamation came into effect on November 27, 2020. DBIL said it is well-capitalised, and its capital adequacy ratios (CAR) remains above regulatory requirements after the amalgamation.
"The amalgamation provides stability and better prospects to LVB's depositors, customers and employees following a period of uncertainty," it said in a release. 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, DBS Bank India added.
Earlier last month, the RBI placed crisis-ridden LVB under a moratorium and announced its merger with DBIL. LVB was looking to raise capital for a long time and had also entered into an agreement with non-banking lender Clix Group for an amalgamation in June this year, but the deal could not get through. Before this, LVB had tried to forge a merger with realty player Indiabulls Housing Finance, which was rejected by the RBI.
LVB is the second private sector bank after Yes Bank which has run into rough weather during this year. In March, capital-starved Yes Bank was placed under a moratorium. The government rescued Yes Bank by asking state-run State Bank of India to infuse Rs 7,250 crore and take 45 per cent stake in the bank.