Scores of Lakshmi Vilas Bank customers have gone on panic mode since the moratorium was imposed; Manoharan says the bank has made adequate measures to provide cash to all customers within the prescribed limit

Chennai-headquartered Lakshmi Vilas Bank got its new acquirer in DBS Bank after two failed mergers. Even though DBS Bank is well capitalised, the foreign bank will bring in additional capital of Rs 2,500 crore upfront to support credit growth of the new entity

The merger of Lakshmi Vilas Bank, an old private sector bank from India, with a foreign bank like Singapore-based DBS Bank is expected to bring its own set of challenges

The troubled lender with 566 branches saw its capital adequacy ratio fall to 0.17 per cent in June 2020; it had Rs 13,827 crore in outstanding loans and deposits worth Rs 21,443 crore at the end of FY20

Payments to the creditors have been capped at Rs 25,000 during the period of moratorium. Withdrawals above Rs 25,000 have been permitted in case of unforeseen expenses