DBS' Lakshmi Vilas Bank deal gets formal nod from India's central bank

INDIA'S central bank has formally approved a proposed scheme through which South-east Asia's largest lender DBS will take over the cash-strapped Lakshmi Vilas Bank (LVB).

The amalgamation of LVB with DBS Bank India Limited will be effective as of Nov 27, said DBS in a bourse filing on Wednesday night.

DBS will inject INR2,500 crore (S$463 million) into its wholly-owned India unit to support the transaction.

Under the scheme, the India unit will take over LVB's INR20,973 crore in deposits and INR13,505 crore in net advances. It will also absorb LVB's network of 563 branches, over two million retail accounts and over 150,000 non-retail clients and about 4,400 employees.

Shares in DBS ended trading at S$25.68 on Wednesday, up eight Singapore cents or 0.31 per cent.