The government of India has, on Nov 25, formally approved the scheme of amalgamation of DBS India and Lakshmi Vilas Bank.
The news comes after the Reserve Bank of India has proposed that Lakshmi Vilas Bank, a troubled local lender, be amalgamated into DBS India, on Nov 17.
See: India's central bank matchmakes troubled Lakshmi Vilas Bank with DBS, dowry of $463 million ready and Proposed merger between DBS unit and Indian bank a win-win situation: Jefferies
Under the scheme, DBS India will take over Lakshmi Vilas Bank’s INR20,973 crore ($3.9 billion) in deposits and INR13,505 crore in net advances.
The former will also absorb the latter’s 563 branches, that are predominantly located in South India.
The amalgamation will be effective as at Nov 27.
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As at 9.13am, shares in DBS were trading 23 cents lower or 0.9% down at $25.45.
