94 years old bank closed today, major changes for customers and investors

The Reserve Bank of India (RBI) first imposed a number of restrictions on Lakshmi Vilas Bank, which is facing cash crunch, and soon after it announced a merger in DBS Bank. Granted

New Delhi: The Reserve Bank of India (RBI) first imposed a series of restrictions on Lakshmi Vilas Bank, which is struggling with cash crunch and soon after it merged with DBS Bank. Announced. The 94-year-old Lakshmi Vilas Bank name will end today. It will merge with Singapore’s largest DBS bank. Under the final scheme, Lakshmi Vilas Bank’s existence will end on November 27, and its shares will be delisted from the exchange.

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Come, today we will tell you the complete details about this bank, how this crisis started and how it will affect millions of customers-

20 lakh customers will be affected

What will happen to bank customers and employees after changing the name of LVS. Regarding the decisions taken in the cabinet, Union Minister Prakash Javadekar (Prakash Javadekar) said that 20 lakh customers of the bank will get relief. They will be able to operate their accounts as customers of DBS Bank India from Friday. Under the bailout package, depositors of Lakshmi Vilas Bank will get all their money. Even if they want to keep their money in the bank, it will be safe.

Money is completely safe

Let us tell you that the bank had assured its customers that the current crisis will not affect their deposits. The bank had said that the assets of depositors, bondholders, account holders and creditors are fully secured with a liquidity protection ratio (LCR) of 262 per cent.

How did the crisis begin?

In the last few years, when the growth of a bank was seen by linking it to its loan book, then its bad phase started. 4-5 years ago Laxmi Vilas Bank started disbursing large loans to Retail, MSME and SME. The loan book of the bank got bigger with a big loan but this became its problem.

Due to lack of economy, the bank’s loan became NPA. At the same time, according to analysts’ estimates, the bank’s corporate loan of Rs 3000-4000 crore is a bad loan. In September 2019, the RBI had to take a number of drastic steps under the Prompt Corrective Action (PCA) framework due to increasing NPAs. The bank lost Rs 894 crore in 2018-19.

How much loss is happening?

Let me tell you that the bank was continuously losing money for the last 10 quarters. Net loss after tax payment for the quarter ended September was Rs 396.99 crore. The bank’s net loss was Rs 357.18 crore in the same quarter a year ago.

What will happen to bank customers and employees after changing the name of LVS. Regarding the decisions taken in the cabinet, Union Minister Prakash Javadekar (Prakash Javadekar) said that 20 lakh customers of the bank will get relief. They will be able to operate their accounts as customers of DBS Bank India from Friday. Under the bailout package, depositors of Lakshmi Vilas Bank will get all their money. Even if they want to keep their money in the bank, it will be safe.

94 years old bank

Let me tell you, there was a period of turmoil in the management of the 94-year-old Lakshmi Vilas Bank (LVB). Explain that the bank has been trying to raise capital for the last few years, but has not been successful. In 2019, the proposal for merger with non-banking finance company India Bulls Housing Finance Company was rejected.

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