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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

DBS, Capri Global among suitors for cash-strapped Lakshmi Vilas Bank
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Only Lakshmi Vilas Bank's deposits will appear on the books of the India unit of DBS Group Holdings Ltd., Singapore’s biggest bank

Andy Mukherjee | Bloomberg
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