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Farm laws have given new rights to farmers: PM

"Parliament has recently passed farm reform laws after rigorous brainstorming," says PM Modi.
The Economic Times
English EditionEnglish Editionहिन्दी
| 29 November, 2020, 12:57 PM IST | E-Paper


    Lakshmi Vilas Bank becomes DBS India; 94-year old bank part of history now

    The debt-ridden 94-year old old bank's fate was sealed with Union Cabinet headed by Prime Minister Narendra Modi approving Scheme of Amalagamation on Wednesday.

    Bank operations may be hit by unions' strike on Thursday

    Many lenders, including IDBI Bank and Bank of Maharashtra, in regulatory filings on ...

    Indian Banks grow mortgage book at the expense of risk averse non-bank lenders

    Industry watchers said despite the presence of more first-time...

    • Following a discussion paper on “Entry of New Banks in the Private Sector”, final guidelines issued in 2013 mandated banks to be set up through a wholly-owned Non-Operative Financial Holding Company (NOFHC). Though large corporate houses were allowed, the NOFHC was to hold a minimum of 40 per cent of the voting capital to be locked for 5 years. Two banks were set up under these guidelines.

      A working group at the Reserve Bank of India recommended a series of changes, details of which were made public last week, that include allowing industrial houses to act as so-called bank promoters, meaning they could take a major stake in a lender.

      The regulator has sought details behind the data centre outage that meant services on the Unified Payments Interface (UPI), ATMs and card channels were unavailable for several hours.

      In a letter to Finance Minister Nirmala Sitharaman on Wednesday, the All India Bank Employees Association (AIBEA) said the approach of merger of the Tamil Nadu-based lender with Indian subsidiary of a Singapore-based bank is opposite to the policy of Aatmanirbhar Bharat professed by the government.

      The funds raised from the event will go towards setting up a second Udbhav RBL School for girl child education.

      Cash transaction including deposits and withdrawal at branches, forex and government transactions have been impacted in many public sector banks where participating unions are strong.

      Ten central trade unions except Bharatiya Mazdoor Sangh are observing one-day general strike on Thursday to protest against various government policies.

      Following the approval, DBS Group Holdings — Singapore's biggest bank — will take over Lakshmi Vilas Bank in a deal pushed by the RBI. This also marks the first instance when India has turned to a foreign entity to bail out a struggling domestic bank.

      Clix Capital has been in talks with the LVB management since June and had also submitted a non-binding agreement in October. Clix had proposed to invest Rs 1,700 crore in equity plus fundraising to meet growth capital requirements.

      According to the draft scheme of amalgamation floated by the RBI on Tuesday, it proposed to merge the beleaguered private sector lender LVB with DBS Bank India Ltd (DBIL), the local unit of Singapore-based DBS Holdings.

      The moth-eaten LVB will cease to exist, its equity completely wiped out. Only its deposits will appear on the books of the India unit of DBS Group Holdings Ltd., Singapore’s biggest bank.

      It’s just not RBI that should tread cautiously. Many corporates, used to appointing their pals as independent directors, influencing auditors and showering key managers with stock options, must note that besides staking their reputation, every move as a bank would need RBI clearance. It can be a stifling world of compliance they aren’t familiar with. For the regulator and the regulated, it would be like crossing the Rubicon.

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    The Economic Times