Govt approves LVB merger with DBS, say will fix blame for lender's failure

The Reserve Bank of India (RBI) took control of LVB on November 15 due to a 'serious deterioration' in its finances and temporarily capped withdrawals

The government on Wednesday approved the merger of Lakshmi Vilas Bank (LVB) with the Indian subsidiary of Singapore's DBS, said a senior minister on Wednesday, adding that the blame for the lender's collapse has to be fixed.
 

The Reserve Bank of India (RBI) took over LVB on November 15 due to a "serious deterioration" in its finances and temporarily capped withdrawals from the Chennai-based lender, which has been scouting for a partner since last year amid mounting bad loan and governance issues.
 

The amalgamation of Lakshmi Vilas Bank with DBS India subsidiary is in the interest of Lakshmi Vilas "employees,