Owing to the merger between Lakshmi Vilas Bank (LVB) and the Indian subsidiary of Singapore's DBS Bank, many customers of the former are worried about their fixed deposits and savings accounts. However, all customers of the pre-independence-established LVB were assured by DBS Bank India Limited (DBIL) through a statement on Monday that they can continue availing all banking services in the newly established merger.
DBIL also announced that until there is a further notice served, the interest rates on savings bank accounts and fixed deposits are to remain the same.
"The moratorium imposed on LVB was lifted from 27 November 2020 and banking services were restored immediately with all branches, digital channels and ATMs functioning as usual. LVB customers can continue to access all banking services. The interest rates on savings bank accounts and fixed deposits are governed by the rates offered by the erstwhile LVB till further notice," DBIL said.
"All LVB employees will continue in service and are now employees of DBIL on the same terms and conditions of service as under LVB," it added.
Lakshmi Vilas Bank (LVB) has been merged with DBS Bank India Limited (DBIL), which is a subsidiary of Singapore's DBS Group Holdings Ltd. The amalgamation that came into effect on 27 November 2020 was enabled through the special powers of the Government of India and the Reserve Bank of India (RBI) under Section 45 of the Banking Regulation act, 1949. This section gives power to the RBI to apply to the Central Government "for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation..," The section was applied to LVB owing to a serious deterioration in the financial positions of the bank.
DBIL also assured that their team is working painstakingly with the LVB employees to incorporate all the data and integrate LVB's systems into the DBS network. "Once the integration is complete, customers will be able to access a wider range of products and services, including access to the full suite of DBS digital banking services which have won multiple global accolades," it said in the statement.
Surojit Shome, CEO of DBIL, commented on the development saying that "the amalgamation of LVB has enabled us to provide stability to LVB's depositors and employees. It also gives us access to a larger set of customers and cities where we do not currently have a presence. We look forward to working with our new colleagues towards being a strong banking partner to LVB's clients."