{"id":1373,"date":"2020-11-18T13:24:56","date_gmt":"2020-11-18T13:24:56","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=1373"},"modified":"2020-11-18T13:24:56","modified_gmt":"2020-11-18T13:24:56","slug":"lakshmi-vilas-bank-under-moratorium","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/lakshmi-vilas-bank-under-moratorium\/","title":{"rendered":"RBI places Lakshmi Vilas Bank under moratorium"},"content":{"rendered":"

Reserve Bank of India has placed Lakshmi Vilas Bank under moratorium for a period of 30 days effective Nov 17 as per the banking regulator\u2019s press release<\/a>. In these 30 days, bank account holders can only withdraw up to Rs. 25,000.<\/p>\n

In another communication<\/a>, RBI said that it has superseded the Board of Directors of the Bank for 30 days to protect the depositors\u2019 interest and T. N. Manoharan, former Non-Executive Chairman of Canara Bank has been appointed as the Administrator of Lakshmi Vilas Bank.<\/p>\n

RBI said that this step was taken owing to the bank\u2019s financial instability. The circular said, \u201cthe financial position of The Lakshmi Vilas Bank Ltd. (the bank) has undergone a steady decline with the bank incurring continuous losses over the last three years, eroding its net-worth. In absence of any viable strategic plan, declining advances, and mounting non-performing assets (NPAs), the losses are expected to continue.\u201d<\/p>\n

\u201cThe bank has not been able to raise adequate capital to address issues around its negative net-worth and continuing losses. Further, the bank is also experiencing the continuous withdrawal of deposits and low levels of liquidity. It has also experienced serious governance issues and practices in recent years which have led to deterioration in its performance,\u201d it added.<\/p>\n

In a separate press release<\/a>, RBI said that it has drafted a scheme of amalgamation of Lakshmi Vilas Bank and DBS Bank India which is a wholly-owned subsidiary of DBS Bank, Singapore.<\/p>\n

DBS India has a healthy balance sheet, with strong capital support, as on June 30, its total regulatory capital was Rs. 7,109 crore as against Rs. 7,023 crore in March, RBI said.<\/p>\n

Although the DBS India is well capitalised, it will bring in additional capital of Rs. 2,500 crore upfront, to support the credit growth of the merged entity. Owing to a comfortable level of capital, the combined balance sheet of DBS India would remain healthy after the proposed amalgamation, it added.<\/p>\n

The account holders are requested to take note of this while they initiate any transaction.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reserve Bank of India has placed Lakshmi Vilas Bank under moratorium for a period of 30 days effective Nov 17 as per the banking regulator\u2019s press release. In these 30 days, bank account holders can only withdraw up to Rs. 25,000. In another communication, RBI said that it has superseded the Board of Directors ofContinue reading “RBI places Lakshmi Vilas Bank under moratorium”<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":1078,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/1373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=1373"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/1373\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/1078"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=1373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=1373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=1373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}