Lakshmi Vilas Bank merge with DBS Bank, NSE, BSE suspends trading from 26th November 2020

The Central government via a Finance Ministry notification on November 25 has sanctioned the final scheme of merger between Lakshmi Vilas Bank (LVB) and DBS Bank India which will come into effect from 27th  November 2020. LVB Shares was suspended from 26th November 2020, from the NSE, as the bank will merge with the DBS Bank on 27th November 2020 and the stock will be delisted from the exchange on same day.

Depositors of the Lakshmi Vilas Bank will be able to operate their accounts as customers of DBS Bank India with effect from November 27, 2020. Consequently, the moratorium on the Lakshmi Vilas Bank will cease to be operative from that date," said Lakshmi Vilas Bank in a regulatory filing on NSE.

Bombay Stock Exchange too, suspended trading of the bank’s shares. “Trading members of the Exchange are hereby informed that, Lakshmi Vilas Bank Ltd has now informed that pursuant to the Scheme of Amalgamation as notified by The Government of India after consultation with the Reserve Bank of India, has sanctioned the Scheme of Amalgamation providing for Amalgamation of Lakshmi Vilas Bank Ltd (Transferor  Bank) into DBS Bank India Ltd,” the exchange said in a circular.

“In view of the above intimation, the equity shares of Lakshmi Vilas Bank Ltd shall not be available for Trading  w.e.f. Thursday, 26th November, 2020  (DR -167/2020 – 2021). Trading Members of the Exchange and Market Participants are requested to note the same,” it added.

In a statement, the Reserve Bank of India said that the amalgamation will come into force on November 27. All the branches of the Lakshmi Vilas Bank Ltd will function as branches of DBS Bank India Ltd with effect from this date, it said.

"Customers, including depositors of the Lakshmi Vilas Bank Ltd. will be able to operate their accounts as customers of DBS Bank India Ltd with effect from November 27, 2020. Consequently, the moratorium on the Lakshmi Vilas Bank Ltd. will cease to be operative from that date. DBS Bank India Ltd is making necessary arrangements to ensure that service, as usual, is provided to the customers of the Lakshmi Vilas Bank Ltd," said the RBI statement.

On Wednesday, the LVB's shares on the NSE closed at Rs 7.65, higher by 4.79 per cent from its previous close.