Lakshmi Vilas Bank: The rise and fall of a 94-yr-old troubled bank from Tamil Nadu
While RBI rejected the Indiabulls offer, Clix Capital offer was stuck on valuation issues. Clix Capital had valued their loan book at Rs 4200 crore, while LVB valued it at Rs 1,200-Rs 1,300 crore, creating a mismatch of over Rs 2,500-Rs 3,000 crore.
Airtel Payments Bank to expand footprint in West Bengal
Over 12,500 unbanked villages in the state now have access to formal banking services...
Had demanded timely action from RBI on Lakshmi Vilas Bank, merger with a public sector bank: AIBEA
For the past three years and more, the Tam...
Lakshmi Vilas Bank placed under moratorium, withdrawals capped at Rs 25K; RBI proposes merger with DBS Bank
The government on Tuesday placed Lakshmi Vilas Bank under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 p...
RBI proposes merger with DBS Bank as possible solution to Lakshmi Vilas Bank's capital woes
DBS would invest Rs 2,500 crore in the equity of the bank that would help the merged entity have a comfortable capital position. This would also help the Singapore bank gain a banking license. It also ends Clix Capital's plan of converting into a bank.
Half of NBFCs which qualify for bank licence are corporate-owned
The Reserve Bank's internal working group in its report had said that well-run NBFCs, with an asset size of above Rs 50,000 crore, including those which are owned by a corporate house, may be considered for conversion into banks.
The reasons behind the fall of Lakshmi Vilas Bank
The mounting of NPAs started from the second half of 2017 largely due to economic distress as well as management failures of several companies. The successive net losses from September 2017 quarter along with asset quality concerns took the fizz away from the bank.
Banks will offer more doorstep services soon: Rajkiran Rai, Union Bank of India MD
IBA is coordinating the government’s initiative to provide doorstep banking as a chargeable, outsourced service. This is particularly relevant to senior citizens, who should not be out during Covid.
Proposal to allow business houses into banking a good-looking step in bad direction: Kaushik Basu
Basu further said that there is a good reason why all successful economies have a clear dividing line between industries and corporations on the one hand, and banks and lending organizations on the other.
Bank credit growth slows to 5.8 per cent in September quarter: RBI data
The deceleration in bank credit growth was seen across all the population groups – rural (11.2 per cent vs 14.8 per cent), semi-urban (9.4 per cent vs 12.3 per cent), urban (8.7 per cent vs 9.9 per cent) and metropolitan (3.6 per cent vs 7.2 per cent), the data showed.
RBI has set precedence in LVB bond write-off, will hurt other banks: Report
During the Yes Bank rescue earlier this year also, there was an over Rs 7,000-crore bond write-off, but that involved a different instrument called additional tier-I bonds.
Big business houses may be allowed to set up banks
A Reserve Bank of India (RBI) working group has suggested that big business houses be allowed to set up banks, ending a half-century-old bar that’s kept the biggest corporate names out of the sector.
View: Why a rush from large corporate and industrial houses to own banks is still very unlikely
Reactions to the recommendation allowing industrial houses to own banks have been strident. The main contentions being that India had eschewed large corporate houses from owning banks for over 50 years for good reasons that still stand. So, goes this line of thinking, it isn’t — at least now —the right time to change the policy.
“Consolidated supervision” clause may deter corporate houses to seek bank license
A central bank internal working group (IWG) has recommended the Reserve Bank of India (RBI) prepare a road-map for strengthening the supervisory mechanism at large conglomerates, and the provisions could include “consolidated supervision,” beyond Mint Road’s traditional bailiwick of banking.
Bombay High Court refuses Lakshmi Vilas Bank promoters' plea to stay merger with DBS
"We are refusing the interim relief sought by the petitioners to stay the amalgamation. The petitions shall be placed for hearing on December 14 when the respondents (Reserve Bank of India, LVB and DBS Bank India) shall file their affidavits in reply," the court said.