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DBS faces lawsuits in India after takeover of Lakshmi Vilas Bank

DBS's Lakshmi Vilas acquisition was the first time the Reserve Bank of India turned to a foreign lender to bail out a local bank

Lakshmi Vilas Bank, LVB
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Chanyaporn Chanjaroen | Bloomberg
DBS Group Holdings Ltd., Southeast Asia’s largest lender, said it’s facing lawsuits in India related to its recent takeover of a struggling local bank.

Holders of Lakshmi Vilas Bank Ltd.’s equity shares and Tier-II bonds that were written off before the effective date of amalgamation took legal actions against DBS’s local unit in various high courts in India, the Singapore-based lender said in a reply to questions from Bloomberg News. The acquisition was completed on Nov. 27, DBS said earlier this month.

“DBS has no incremental unprovided risks on these lawsuits,” it said. “Other legal liabilities in the normal course of business

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First Published: Feb 20 2021 | 11:07 AM IST

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