Lakshmi Vilas Bank failed and this time India is getting a rescue right

India called upon called upon a foreign institution to take over Lakshmi Vilas Bank's assets and liabilities. That should stoke interest of other global banks

Another Indian bank has failed, the third collapse of a major deposit-taking institution in 15 months and the first since the onset of the coronavirus pandemic. But instead of allowing a zombie lender to linger after a half-baked rescue, the central bank has wisely decided to put Lakshmi Vilas Bank Ltd. out of its misery. Better still, it’s called upon a foreign institution to take over the assets and liabilities. That should stoke interest of other global banks.
 

The moth-eaten LVB will cease to exist, its equity completely wiped out. Only its deposits will appear on the books of the